US Tsy futures trade lower in early.........>

US TSYS: US Tsy futures trade lower in early dealing. The US is set to observe

the Memorial Day holiday on Monday so desks could be a little thinner than usual

as cash markets are closed.

- The June 12 US-North Korea summit seems a more likely proposition than it did

48 hours ago, with Trump seemingly a little more upbeat on the matter in

comments made over the weekend. Also, the Italian President has blocked the

formation of the M5S/League government as a euro-sceptic was proposed as the

economy minister, which will likely send Italy back to the polling booths.

- Futures are now off of worst levels, but T-Notes remain well shy of Friday's

closing levels. Eurodollars are also lower at the start of the week, with the

white & red contracts 2-4 ticks lower.

- Wednesday brings the second Q1 US GDP estimate, Thursday heralds the release

of April's PCE data, while Friday brings the release of the latest US labour

market report. On the Fedspeak front this week brings comments from Fed Gov.

Brainard, voter Bostic & non-voter Bullard.

- T-Notes last at 119.25+, US 10-Year yields closed at 2.931%.