Rates trading steady to mixed, long....>

US TSY FLOWS: Rates trading steady to mixed, long end Tsy futures mildly

higher/near recent highs. Tsys followed Gilts higher after BoE Carney comments

suggesting "building a war chest in interest rates for future shocks would not

be in-line with inflation target" (Reuters). Equities steady (emini +0.00,

2556.25), gold adding to Mon's sell-off (-6.25, 1288.25), oil little firmer (WTI

+0.27, 52.14).

- Asia, kicked off w/mild bid in Tsys, some safe-haven support amid ongoing

U.S./N. Korea tensions. Sources reported misc acct selling 5s and 10s, better

selling in 10s and 30s into London crossover.

- London, mild chop/two-way flow w/misc buying in 3s, macro fund buying 5s,

selling in 10s, end users sold the long end; 5s30s curve flattener interest.

- Swaps, spds running steady/mixed, spd curve steepener flow including macro

fund paying in the intermediates.

- Overnight repo tight in 5s, old 2s, 3s, 5s and 7s.

- Eurodollars, trading steady/mixed, small bid in Mar8-Mar9. LIBOR climbing w/3

Month +0.0034 to 1.3573% (+0.0040/wk), 6 Month +0.0121 to 1.5452% (+0.0109/wk).