T-Notes extending losses made on the...>

US TSY/RECAP: T-Notes extending losses made on the overnight in Asia, last at

125-03+, 10-Year yield last at 2.343%.

- Treasuries ended a choppy Thursday overnight session mixed after a slow start,

then pressure from German Bunds selloff, US corporate bond rate-locks and

pre-auction shorts into $15B US 30Y bond auction. 

- Good Tsy 30Y auction: 2.801% rate, strong 61.8% indirects, mild 6.42% directs,

left only moderate 31.8% for dealers to mop up. Mkts had somewhat cautious mood

after Japan's Nikkei stock index had mini flash crash: 2% gain then 1.7% loss

then ended -0.2%. And US stocks pressured by news US Senate tax plan wld delay

20% corporate tax rate to Jan. 1, 2019. House tax planners working on a version

too. - US$ firmed vs. yen earlier, pressuring Tsys; later receded aiding Tsys

bid. Oil gains on Saudi Arabia power play/anti-corruption move. 

- Flows had 2way in short end from fast$, prop accts, steepeners, deal-tied

hedging. Eurodollar futures Block buy 6k White packs (EDZ7-EDU8). Big Tsy

steepener Block (+17.6k TYZ 10Y vs. 4.7k WNZ Ultra); +12k TYZ 10Y 125-07. Block

in Tsy bounce off lows. Tsy futures Dec/Mar roll action muted.