Quiet late trade, Tsys mixed after.....>

US TSY FLOWS: Quiet late trade, Tsys mixed after firmer open, curves steeper for

second consecutive session. Tsys followed Gilts lower after early reports

Germany & UK to drop key Brexit demands, denial couple hours later: German

spokesman said govt stands pat/Brexit demands have NOT changed. Long end back to

steady, curves maintained steeper profile early in second half.

- Limited react second-tier data, mild Tsys bounce/US$ reversed gained following

StL Fed Pres Bullard comments that "more hiking could unnecessarily raise

recession risk." Fed pres' Bostic, Kashkari speak later in evening.

- US$ index off highs DXY -.250, 95.189 (95.085L/95.663H), $/Eur +0.0041 at

1.1623, $/Yen +.13 111.54; equities weaker/off lows (emini -9.25, 2889.0); Gold

firm (XAU +4.75, 1996.31); West Texas crude weaker/near lows (WTI -1.08, 68.79)

after rallying to late 2014 highs Tuesday (71.40). 

- Decent two-way flow in shorts to intermediates, Blocked steepener FVZ/WNZ

(duration neutral) and outright buying 13.8k FVZ, decent deal-tied hedging/heavy

corp supply. Tsy cash/ylds: 2Y 99-30 (2.653%), 5Y 99-29 (2.769%), 10Y 99-24.5

(2.900%), 30Y 99-17.5 (3.074%).