US Treasuries have extended their...>

US TSYS SUMMARY: US Treasuries have extended their sell-off in London morning

session, having mainly flat lined in Asia with market sources reports stop loss

selling in Tsy futures, chatter of convexity hedging and overall negative

sentiment. US 10-yr Tsy yield is at 2.6053%, 1.67bp higher than NY close and

highest since March 2017.

- China Q4 GDP rising to 6.8% y/y, touch above expectations of 6.7% y/y, and

news of Apple moving large amount of cash back to the US, paying $36bln in taxes

and invest tens of billions in US jobs have all weighed on US Tsy as well.

- Swap spreads are marginally wider, while breakevens are mixed with 5-yr little

changed but 10-yr and 30-yr 1.5bp and 2.2bp wider respectively.

- Attention turns to US housing starts, Philly Fed survey and jobless claims at

start of NY session.

- Elsewhere MNI sources noting seeing decent buying in the 1-Year area in bills

this week, particularly out of Asia.