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

US TSYS SUMMARY: US Tsys are trading modestly lower and close to session lows

following decent selling in cross over from Asia to London trade, while the

yield curve has bear steepened slightly. 10-yr Tsy yield is 2.1bp higher at

2.975% while 2-yr is little changed 2.6694%. 

- Tsys held a tight range during Asia with a rather muted reaction to to U.S.

Tsy Sec. Mnuchin's upbeat growth assessment & U.S. President Trump's threat to

shut down the government if the Democrats don't come to the table on border

security.

- Tsys sold off after start of London trade, weighed by move lower in Bunds and

Gilts as markets looked ahead to heavy slate of global central bank meetings

this week that includes BoJ, Fed and BoE. There was a block buy in 3,765 TYU8 at

119-14+ but this failed to halt the slide lower in Tsys. Buyers were then seen

coming into the market as 10-yr yield neared 2.985%. 

- Eurodollar futures are mixed, strip steeper as whites are steady to 0.5 tick

higher, while blues fall by 1.5 to 2 ticks.