US Treasuries remain under..........>

US TSYS SUMMARY: US Treasuries remain under pressure having weakened overnight

in Asia with the 2-yr to 7-yr part of the yield curve bear steepening but the

7-yr to 30-yr part bear flattening. US 10-yr yield is 2.4bp higher at 2.893%

with 2s/7s spread 0.8bp wider and 7s/30s 0.8bp tighter.

- In Asian US Tsys came under some selling pressure led by the belly of the

yield curve, while strong Aussie labour market report also pressured the space.

- 10-yr Tsy future held lower bound range at beginning of London trade, but then

slipped to fresh session low of 119-27+ with little seen to trigger the move,

however volumes were very thin. Heavy European and UK bond supply could of been

a factor.

- The future has since bounced off lows though with contract last at 119-28+

- The Euro-dollar strip has moved lower by 1 to 3.5 ticks, in sympathy with

Bonds, with a parallel shift observed from the red contracts out.

- There is the usual weekly initial jobless claims and the Phili Fed Mfg index

released at 0830ET, while the Fed's Quarles will speak later on Thursday, with

Bullard due Friday ahead of Saturday's blackout.