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/EGBS: Treasuries appear pressured..........>

US TSYS
US TSYS: /EGBS: Treasuries appear pressured cross-mkt by sales in UK Gilts and
German Bunds, as Gilts, Bunds, French debt, other EGBs all close Fri near wk's
high yields. Gilts reacted as normally dovish BOE's Vlieghe endorsed near-term
UK rate hike while Bunds hurt as ECB/BBK's Lautenschlaeger hawkish too. "You
have a Fed meeting next week, and the BOE is being more hawkish," said a trader.
"Plus, the ECB was hawkish last week."
- Tsys also had supply concern: dealers still unload leftover supply as wk's
soggy 3/10Y/30Y auctions settle Fri (30Y auction at profit; 3Y, 10Y at loss.) 
- Tsys had early mild post-retail-sales bid and initial black box buying as US$
softer vs. Jpn yen, then reverse, selling, as US$ gained since 9:30am ET.
Traders cite some rapped longs try to sell Tsys upticks. Plus lots of US mkt
players already covered shorts if needed on late wk soft price action. 
- Tsys saw 5Y, 30y buying and 7Y, 10Y sales. Some still expect cld be at least
mild safe-haven bid into weekend on lingering N.Korea risk after missile fired
overnight over Hokkaido, Jpn, near US's Guam. The UN Security Council will meet
at 3pm ET on the N.Korea issue.

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