Tokyo hours saw some mild risk off.....>

US TSY FLOWS: Tokyo hours saw some mild risk off buying as US and South Korea

began ten days of military drills. Japanese Nikkei stock index ended down 0.4%. 

- London saw EGBS improve aiding Tsys. 

- End users did receiving in two year US swaps. European stock indices traded

mixed. In Asian time, gold rose alongside Japanese yen. 

- WSJ said ECB Draghi could unveil QE taper at Jackson Hole conference Friday;

that conflicts with prior reports that said he would not unveil any new policy

changes at that time. 

- US President Trump will unveil latest military strategy on Afghanistan in a

9pm ET speech. Recently a French vehicle hit two bus stops; more details

awaited. Europe is on edge about further terror attacks after several terror

attacks last week in Spain.

- Also hearing of banks receiving in 10Y an 30Y in London. Tokyo saw Asian banks

buying 10Y UST notes.