US Tsys are trading modestly........>

US TSYS SUMMARY: US Tsys are trading modestly lower but in the middle of its

overnight range weighed by an agreement on EU migration, surprise upside to UK

Q1 GDP but underpinned by remaining differences on Brexit and global trade

concerns. US 10-yr Tsy yield is 0.5bp higher at 2.842% vs intra-day high of

2.862% with the belly of the yield curve seen underperforming the wings.

- Tsy future was trading steady before falling sharply on news that the EU had

an agreement on migration and then remained close to session lows at start of

European session.

- Further selling was then seen, taking cue from sharp sell-off in UK Gilts and

German Bunds as UK Q1 GDP was revised up to 0.2% q/q from 0.1% q/q, and markets

worried about possible higher EU inflation data.

- Tsys bounced off lows though as EU inflation came in-line with expectations

and Michel Barnier said there was still large differences in Brexit negotiations

and then newswire headline that Trump seeks WTO exit. 

- Eurodollar futures are now mixed, curve touch steeper as whites are up 0.5 to

1 tick. Attention turns to US PCE, personal spending, Chicago PMI & U.Mich data