Rates running mixed late Thu, well.....>

US TSY/RECAP: Rates running mixed late Thu, well off early lows on heavy volume

(TYH>2.9M), late support as DJIA tumbled>1,025pts, eminis down over 77.0 by the

bell. CDX IG nearly 5.5pts higher -- imminent credit event? Choppy trade post

so-so 30Y bond auction, weaker w/slight 1bps tail, awarded 3.121% rate (stopped

out at 2.867% previous); 2.26 bid/cover. Crude extending Wed's late second half

drop (WTI -1.01, 60.78). 

- Tsys opened lower/off post-BoE annc lows, curves steeper on heavier volume,

heavy selling TYH 120-27 to 120-24 before making new session lows of 120-17.

Wkly claims -9k to 221k, Dec housing Px +3.3%. Fed Harker sees 2 hikes in '18,

Dudley 4 but can be patient. 

- Massive duration weighted 10s/Ultra-bonds flattener Block faded week's

steepening (-33.6k TYH 120-17 vs. +8.6k ULH 156). Deal-tied flow. - Heavy real$

selling in intermediates to long end earlier, 2-way curve flow after large

flattener block, 5s and 7s vs. 30s steepeners, 10s30s flatteners. Real$ selling

off the run 5s and 10s to get current.

- T-Notes last up 7 ticks at 121.03+, 10-Year yield last 2.819%, down 0.5bp.