Trades firmer, paring gains as mkts....>

US TSY FLOWS: Trades firmer, paring gains as mkts listen to UK PM Theresa May is

addressing parliament re: Brexit (>2Hrs and running). Rate rally gained momentum

after Brexit Sec Raab resigned, a knock to PM May, McVey and 2 additional junior

members resigned not long after. Chatter of confidence vote for May making

rounds. 

- Mkts taking in stride. US$ index firmer, SPX higher, Gold paring back small

portion Wed's gains, West Texas crude steady. Largest data drop today, focus on

October retail sales (0.5%), see 0735 and 0740ET bullets.

- Overnight flow includes prop, fast- and real$ buying intermediates as Brexit

headlines got underway, real$ selling 10s on the follow. Early Dec/Mar futures

rolling adding to decent overall volume; yld curves mildly steeper. Brief round

EDZ8 sales after 3M LIBOR set +0.0110 to 2.6400% (+0.0219/wk), front quarterly,

EDM9 and EDZ9 leads volume. Spds running mostly wider, long end lagging move,

two-way in intermediates, macro fun receiving 10s, deal-tied paying in mix.

- Tsy cash/ylds: 2Y 100-01.75 (2.844%), 5Y 99-24 (2.928%), 10Y 100-06 (3.101%),

30Y 100-15.5 (3.348%).