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US Tsys are trading higher and......>

US TSYS SUMMARY
US TSYS SUMMARY: US Tsys are trading higher and close to top end of Monday's
range as global trade and German political concerns support risk-off sentiment.
US 10-yr yield is 3.1bp lower at 2.829% with yield curve pivoting around the
10-yr sector as 2s/10s flattens by 1bps and 10s/30s steepens by 1bps.
- US Tsys edged higher in late Asian trade supported by soft export components
in the latest round of Chinese manufacturing PMI surveys and then extended gains
on political uncertainty in Germany.
- Prices faded from session highs on back of better than expected UK
manufacturing PMI data, but remained underpinned by global trade concerns and
emergency meeting between German Chancellor Merkel and interior minister
Seehofer on the migration issue.
- Main event risks are scheduled for the end of the week, however US
construction spending and ISM manufacturing is released later today.
- Euro$ strip is 0.5 to 3.5 ticks higher, curve flatter but volume is light.
While swap spreads are mixed and breakevens little changed.

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