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

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)