Rates finished a touch lower in the....>

US TSY/RECAP: Rates finished a touch lower in the main on Wednesday, with

30-Year paper steady. T-Notes traded in a narrow range going out near the lower

end of the space. Focus remained on Brexit/UK gov't matters, with volume

generally light.

- Modest flattening was aided by a large TY/WN block trade in early NY hours.

- Worth flagging early London option activity as well, FVG 114.00/114.25 call

spread paper paid 0-13 on 50K & FVG 115.00/115.25 call spread 50K given at 0-01.

- Focus on financials' earnings as well, with FICC on the soft side for all of

the big banks that have reported thus far.

- Fed dove Kashkari due shortly. Fed's George elaborated on recent cautious

comments in a WSJ interview Wednesday, noting that the central bank's shrinking

portfolio of bonds may be a "fair explanation" for what's driving stock

volatility. "This idea that it was like paint drying, I didn't really embrace

that." Quarles, Williams & Harker will all speak before the Fed goes into

blackout this weekend.

- T-Notes last 121.23+, U.S. 10-Year Tsy yield closed at 2.722%.