Brean Capital's Scott Buchta.......>

US TSYS/RESEARCH: Brean Capital's Scott Buchta said US Treasuries yields are

"modestly higher this morning on better Japanese data and reduced tensions in

Asia. As a whole, however, Treasury yields have trended lower over the past

several weeks, moving from 2.40% to 2.20% since the beginning of July."

- He adds that "volatility continues to fall as the daily moves that we have

seen in terms of both yields and spreads remain relatively limited. Whether this

drop in volatility is due to the growth in passive investing or a general

decline in proprietary risk taking remains to be seen, but the trend has

certainly been lower over the course of 2017. Headline risk remains at very high

levels, and we would not be opposed to taking advantage of opportunities to sell

least favorite assets into strength."