US Treasuries ticked lower at.......>

US TSYS SUMMARY: US Treasuries ticked lower at start of Asian trading but just

about recovered by the start of European session and has remained relatively

stable since.

- Flows have been extremely light though as London is shut for summer bank

Holiday and European data has been very thin. There has been a large buyer of

TYZ7 163 calls at '20/'21 though and future calendar rolls have continued

throughout the morning.

- Over 116k TYu7/Z7 has traded on screen so far today between '08+ to '09 and

around 45k FVU7/Z7 between '08.75 to '09.25

- There are some unsubstantiated rumors on Twitter that North Korea is preparing

for a nuclear test, but so far markets showing little reaction to this.

- The cash market is very quiet at the moment with yields mixed with no change

seen in the 2-yr note at 1.332%, but weakness seen in 5-yr and 10-yr notes. 5-yr

note is 0.5bp higher at 1.762% while 10-yr note is 0.2bp higher at 2.168%.

- Markets seen looking forward to key US data releases towards the end of the

week, including personal income/spending, PCE, MNI Chicago report and non-farm