US Treasuries came under selling....>

US TSYS SUMMARY: US Treasuries came under selling pressure as European session

got underway, pushing yield on the 10-yr Note to 3.0296%, but have since found a

small bid and is now 1.3bp higher since US close at 3.0127%.

- There was little news to trigger the downside move, however sources noted

heavy selling in TYM8 contract with around 40k going through screens within 15

minutes on move from 119-02 to 118-31. Around about the same time a 10-yr

Ultra/10-yr Bund spread trade went through in futures space with 4,302 UXYM8

sold at 126-30 vs buying 2,759 RXM8 @ 157.62.

- During Asia 10-yr yield straddled 3.00%, trading within small margins either

side of the figure. The first brief move above 3.00% in yield terms allowed

T-Notes to challenge Tuesday's lows, with the level holding as there was little

in the way of a catalyst to push yields higher after a bout of sell orders hit

futures. The belly of the curve underperformed. 

- The Eurodollar strip has extended its sell-off in London session, with the

white contracts a 0.5 tick lower but red 1.5 to 2.0 ticks, Greens 3 to 3.5 &

blues 3.5 to 4 lower. Traders await 5-Year Note supply on Wednesday.