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Following EGBs lead, Tsy futures.......>

US TSY FLOWS
US TSY FLOWS: Following EGBs lead, Tsy futures trading moderately higher after
scaling back earlier gains during London hours. Equities little firmer (emini
+2.0, 2431.5), gold higher (+7.20, 1295.26), oil little firmer (WTI +0.11,
47.20).
- Asia, carry-over safe-haven bid following terror attacks in Barcelona, Spain,
U.S. political angst never far from the front burner. Bid subsided w/Asian
central banks and real$ active sellers in the intermediates.
- London, profit taking in early hours, fast$ and credit-tied accts selling,
foreign central bank buying in 5s and 10s helped Tsys rebound before bank
portfolio sales in 5s and 30s.
- Swaps, spds running tighter, spd curve steeper with short end leading move,
reversing about half of Thu's move.
- Overnight repo, 2s at fail (negative rate), 5s remain special.
- Eurodollars, mildly higher near middle of narrow range on moderate volume,
recent buyer 8k Jun'18, 98.435, part of Dec'17/Jun'18 sale at 13.0. 3M LIBOR
-0.0017 to 1.3147% (-0.0003/wk)

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