***Treasuries consolidated amid long...>

US TSY FLOWS: ***Treasuries consolidated amid long end pressure showing up more

in futures than cash Tsys. Foreign central bank buying arose in US intermediates

while "it's really back end futures that are selling off and leading the curve

steepening," said a trader. "There may be rate-lock hedging going on as Amazon

has set an investor call for Mon on potential debt issuance." 

- Tsys receded off post-CPI rally high (on tame 0.1% July CPI) amid news of

potential Russia/China "plan" to defuse US/N.Korea tension (N.Korea stops

missile tests, US & S.Korea halt large-scale military exercises), but situation

unsolved so weekend event risk likely spurs late safe-haven Tsys buying. 

- Tsys futures had active block trades: 9:35am ET buy of 8,400 FVU 5Y, 8:33am ET

buy of 5,000 TYU 10YT, 8:32am ET steepener (buy 15K TYU/sell 5,000 TYU), and

8:16am ET apparent sale of 6,420 FVU 5Y futures. 

- Earlier flows had FX-tied buying as yen was strong, then that reversed a bit;

10Y, 30Y saw two-way flows by props, fast$ and real$. Traders said Tsys

pressured too as US stocks higher (tho  European stocks mushy: France CAC-40

-1.07%, Spain IBEX -1.58% but DAX +0.07%.)