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Risk-off, Tsys trading broadly.........>

US TSY FLOWS
US TSY FLOWS: Risk-off, Tsys trading broadly higher/best volume of week
overnight amid steady safe haven bid following spike in US/N. Korea tensions.
Equities weaker (eminis -9.50, 2463.25), gold higher (+7.25, 1268.21), oil
higher (WTI 49.42, +0.25).
- Asia, US Pres Trump "fire and furry" warning to N Korea, N Korea responded
w/threat against US strategically important island of Guam. Rush of short
cover/outright safe haven buying spurred best O/N volume of week, Bank portfolio
joined insurance portfolio buying initially in 10s. Real- and fast$, foreign and
regional central bank and credit-tied buying in shorts to intermediates, FX-tied
buying as well as USD weakened, Asian acct buying long end.
- London, Carry-over risk-off buying extended Tsy rally, misc acct buying 5s and
30s, corp-deal and pre-auction ($23B 10Y today, 30Y Thursday) hedging sales,
real$ two-way in 30s.
- Swaps, mixed but stable, mildly wider for the most part on supply-driven
paying, long end a touch tighter.
- Eurodollars, higher across strip, good call buying short Dec (Dec'18 sector).

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