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Treasuries end lower Wed after......>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries end lower Wed after soft $12B 30Y bond reopening
auction, and after technical weakness and 2-way trading. Traders had caution
into Thu CPI; MNI had median estimates for 0.3% August CPI and 0.2% Core CPI. 
- Tsy 30Y auction tailed mildly to 2.790% with fairly weak 58.8% indirects,
fairly strong 6.82% directs, leaving mildly large 34.4% for dealers. 
- Tsys, rates opened NY mixed, long end outperforming, then technicl selling,
pre-auction shorts, limited dip buying on tame 0.2% Aug PPI,0.1% Core PPI.
Sellers appeared to be more US than foreign accounts, said traders. Stronger
US$/yen fueled some selling with fast$ and real$ sellers adding to deal-tied
hedging in intermediates to long end. Mild rate paying in 2Y-10Ys. 
- Option-tied sales arose in US Eurodlr futures into Fri Sep qrtrly futures and
options expiry. Late large sale of Eurodlr futures: 28,000 sold in Sep'17
98.672. 
- Tsy futures late block at 2:30pm ET: sale 5,800 FVZ at 118-08; earlier block
of 5,000 TYZ at 126-16.5. TSYS 3PM ET: 2Y 1.355%, 3Y 1.485%, 5Y 1.772%, 7Y
2.010%, 10Y 2.194%, 30Y 2.793%.

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