*** Treasuries earlier this week,......>

US TSY FLOWS: *** Treasuries earlier this week, Tues-Wed saw some heavy sales

o/night, which caused head-scratching by traders who asked if it was due to

Pres. Trump tax movement or other causes. While tax/budget worries could have

been cause for some sales, traders tell MNI Asian accts did some position-tied

sales/tweaks into qrtr-end, which made up part of selling, but now adjustment

sales are done. Trading flows thus now more balanced. 

- Still: other traders will watch to see if Tsys holders use late afternoon

month-end time near 3pm ET to sell Tsys. Thinking was, would-be sellers know

lots of index-tied funds need to buy Tsys that time to match month-end index

extension, so it wld be "liquidity event" to sell Tsys to willing buyers. But

given morning selloff, it may be at least some month-end buyers already bought

what needed to buy, so won't be a big explosion of buyers late. Anyway the that

structural sellers need to dump a bunch more Tsys does not seem to pan out or at

least, not at these levels. But still some will have great interest in action

around 3pm ET: should there be big swoop up and big swoop down, speculation will

revive on major sellers with more to do. For now, the worry seems to be lifted.