US Tsys are holding onto slight.....>

US TSYS SUMMARY: US Tsys are holding onto slight gains supported by earlier soft

Australian CPI data but are off intra-day highs following poor German 5-year

auction. 10-yr Tsy yield is 0.7bp lower at 2.9412 vs low of 2.9319% with curve

modestly flatter with 2s/10s 1.5bp tighter as the short-end remains anchored.

- It was a rather quiet Asian session, however, Tsy future ticked higher on the

back of soft Australian CPI data before fading slightly ahead of London trade.

- Tsys remained in tight trading range during first half of London session,

squeezing to the top end of the range despite in-line German IFO numbers, but

then slipping lower following poor demand at German 5-yr Bobl auction. 

- Eurodollar strip has edged higher by 0.5 to 1 tick, volumes though are very

low which markets seen side-lined ahead of ECB monetary policy decision tomorrow

and US GDP data on Friday.

- Highlights today include US new home sales at 1000ET and US President Trump's

meeting with EU President Juncker in Washington.