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/KOREA: Treasuries earlier today receded....>

US TSYS
US TSYS: /KOREA: Treasuries earlier today receded briefly off the highs of a
Korea-inspired safe-haven bid rally amid speculation about a Russia/Chinese
"plan" to defuse the U.S./North Korea tensions. The plan suggested would be that
North Korea stops its nuclear missile tests, while the U.S. and South Korea
would halt their large-scale military exercises, said news reports. 
- But by Friday afternoon, the situation remained unsolved and so European
accounts covered Treasuries short positions by midday, rather than leave
themselves exposed in case of a weekend military flare-up, and US accounts did
likewise in quiet afternoon action.
- However, Monday, should there be no weekend flare-ups, it's likely that
Treasuries could decline a bit, as traders reverse some pre-weekend safe-haven
purchases.

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