London, July 8: US Treasuries traded in London were slightly lower on Tuesday amid selling, but traders said there was little to dent the overall positive tone to the market.

"Overnight we have seen selling in twos, a bit of selling of 10-year notes against Canada and some extension trades up the curve from two-to three-year," said a Treasuries trader at a US bank in London.He said the trading had come mostly from end investors rather than from swap trades.

At 09:53 GMT, the 30-year benchmark T-bond was at 100-16 to yield 6.59 percent, unchanged from the Tokyo close and down from 100-20 in New York on Monday.

Two-year T-notes were at 100-05, unchanged from Tokyo and down slightly from 100-06 in New York, while 10-year T-notes were at 102-18 down slightly from 102-19 in Tokyo and 102-21 in New York.

The trader said the market might pull back slightly and then push higher later in the week.

"We have come a long way on the upside," he said. "The (future) can trade (down) to 113-08 and to 114-00 again on the otherside. Its a question of which way it goes first."

September T-bond futures were at 113-19 in automated trade, down 2/32 from Monday's Chicago settlement.

US data due on Tuesday included the June Richmond Federal Reserve survey at 1400 GMT and May consumer credit at 1900 GMT.

Forecasts are for consumer credit to be at $5.6 billion versus $7.6 billion previously.

Stephen Hannah, Chief economist at IBJ International in London, said the week was very quiet on the data front and the consumer credit figures were unlikley to have much impact.

"The only figures this week that the market is really going to focus on are the PPI," he said.

The June producer price index is due on Friday.

"Even that won't be enough on it's own to alter current perceptions which are still moderately bullish," said Hannah.

He said for now the market was likely to maintain its reasonable tone.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.