US Tsy are trading a little.........>

US TSYS SUMMARY: US Tsy are trading a little heavy, overall weighed by

announcement at the weekend by Mnuchin that US will put China tariffs on hold

for now, but are off overnight session lows, supported by rally in German Bunds

and UK Gilts. US 10-yr Note yield is 1.7bp higher at 3.0726%, with 2yr to 10-yr

part of the curve little changed but slightly flatter further out as 30-yr yield

rises by only 0.7bp.

- During Asian session news flow was light, with Tsys initially opening lower on

the back of the US/China trade war headlines, however recovered lost ground in

wake of block buying in US 10-Year Tsy futures with the benchmark contract

briefly returning to unchanged, before easing again ahead of European hours.

- US Tsy future once again recovered taking cue from opening rally in German

Bunds and UK Gilts, as markets traded with a mild risk-off tone following

announcement on Sunday that the 2 populist parties in Italy had agreed upon a

Prim Minister. But sellers came back into the market and pushed TYM8 lower.

- Eurodollar futures look offered across the strip, with reds and greens off

2.0-2.5 ticks, reversing Friday's gains and helping lift the USD.