US treasuries ticked higher.........>

US TSYS SUMMARY: US treasuries ticked higher overnight in Asia seemingly

supported by a short list of Fed Chair contenders that has been given to US

President Trump that reportedly did not include the current Chair Janet Yellen

and some newswire headlines that suggest Fed Powell is favourite over former Fed

Warsh and Cohn and therefore a little dovish.

- There was also talk of short covering and dip buying with some highlighting

JPM's client survey showing record duration shorts

- In European morning session, treasuries faded from highs, on the back of

selling in UK Gilts in wake of higher than expected UK service PMI data, but

have since recovered some of the lost ground to now trade in mid-range.

- 10-yr US Tsy yield is 0.5bp lower at 2.318%, while 2-yr and 5-yr are 0.8bp

lower, but is 30-yr little changed. Swap spreads are marginally tighter across

the board.

- Markets attention now turning to US ADP employment numbers and ISM non-mfg

data.