US Treasuries have squeezed off.....>

US TSYS SUMMARY: US Treasuries have squeezed off from Thursday's US closing

levels underpinned by BoJ announcement and softer than expected French flash Q2

GDP data, however, price action was limited ahead of US advanced Q2 GDP. US

10-yr yield is 0.2bp lower at 2.9746% with yield curve ever so slightly bull

steepening as short-end outperforms the rest of the curve.

- Tsys actually slipped lower in the first half of Asia trade before finding a

bid in wake of the BoJ offering to buy an unlimited amount of 10-yr JGBs at

0.10%, compared to 0.11% earlier in the week.

- Then French flash Q2 GDP coming in at 0.2% q/q vs consensus for a 0.3% q/q

print then underpinned the tick higher in Tsys. This brought in some mild

sellers before buyers came back in and pushed the T-note future to fresh high.

- Eurodollar futures have edged higher with the strip flattening slightly as

blue contracts rise by 0.5 to 1 tick, volume has been subdued though. Both swap

spreads and breakevens are marginally tighter.

- Attention turns to US advanced Q2 GDP with consensus looking for a 4.2% print,

but noting Trumps comments that he would be fine with 3.7%, 3.8% or 3.9%.