The 10Y US contract naturally.......>

US TSYS SUMMARY: The 10Y US contract naturally rose on news of the North Korean

missile launch but only by 2-32 and this had been surrendered within the space

of 2 hours as the missile passed over Japan and fell into the sea.

- In line with recent experience UST price action outside of US trading hours

has been severely dampened. Another hawkish speech by the Bank of England's

normally dovish member, Vlieghe sent Gilt yield 5bp higher. Soon after, a

hawkish speech by ECB's Lautenschlager caused Bunds to crack lower. The TYZ7

meandered 1/32 lower over these tumultuous moments in European markets.

- There has been some selling in the Dec-17 Eurodollar contracts but not large

volumes. In the swap market the largest two trades have been a pair of receivers

seen in the 2Y.

- Lots of weekly research comes out on Friday and the vast majority comes with

warnings for bulls ahead of next week's FOMC meeting. 

- The US bond market has the August retail sales data out later, alongside IP

and Michigan sentiment.

- The 2Y and 10Y USTs are each 1bp at 1.372% and 2.195% respectively.