US Tsys are trading little..........>

US TSYS SUMMARY: US Tsys are trading little changed from Monday's US closing

levels apart from the 2-yr which has edged higher after yields touched fresh

cycle highs above 2.605% Monday. Volumes have been very low and markets thin

however as they wind down for summer trade.

- The US Tsy curve is slightly steeper with 2-Yr yields down 0.6bps, but 30-Yr

little changed at 2.961%. 10-yr TSy yield is 0.4bp lower at 2.8545%.

- In Asia, Tsys stuck to a tight range in the early part of the session, with

little in the way of news flow to prompt traders into action, before the space

moved to fresh session lows, in sympathy with Australian Bonds, which were

subject to pressure around Bond syndication, allowing the U.S. Tsy curve to

steepen. Tsys bounced off lows though ahead of London open with attention on UK

labour data and Italy final HICP.

- Euro$ strip is steady to higher, curve touch steeper though as white and red

contracts rise between 0 & 1 tick, while greens/blues unchanged.

- Attention set to turn to Q&A section of Fed Chair Powell's semi-annual

monetary policy report due Tuesday & Wednesday.