Quiet end to the week, Tsys traded.....>

US TSY FLOWS: Quiet end to the week, Tsys traded weaker all day, extending move

after BTP/Bund spds reversed earlier widening (5Y -37.0 to 274.0) on the back of

comments from European Eco-Affairs Comm Moscovici: "EU'S MOSCOVICI: ITALY

STRONGLY COMMITTED TO EU, EURO", "EU WON'T INTERFERE IN ITALY ECONOMIC

POLICIES", "EU NOT WILLING TO LECTURE ITALY GOVT ON BUDGET" all bbg headers.

- Incidentally, pound sterling surged to session high of 1.3104 on headline:

"U.K. IS SAID TO DROP BREXIT DEMAND ON IRISH BORDER TO EASE DEAL" bbg;

pound-sterling scaled back move soon after.

- Risk-on tone tempered in second half as equities scaled back gains on couple

large program sales, tech and semiconductor heavy.

- Heavy two-way flow in EDZ8 Eurodollar futures, strong buying early as 3M LIBOR

didn't set as high as anticipated. FRA/OIS gapped 2.0 tighter -- but gradually

retraced move in second half w/EDZ'8 trading lower (total EDZ8 volume >610k).

- Tsy cash/ylds: 2Y 99-22.5 (2.908%), 5Y 99-06 (3.051%), 10Y 97-09.5 (3.196%),

30Y 92-28 (3.380%).