Treasuries end Mon mainly weaker....>

US TSYS SUMMARY: Treasuries end Mon mainly weaker after early safe-haven bid on

terror fear amid NYC subway bomb blast that hurt 4, including suspect. Once

suspect arrested, and police checks showed no other problems, Tsys lost

safe-haven bid. 

- Tsy declined in afternoon: post-auction sales, soft $20B 10Y reopening auction

(tailed to 2.384% rate, 2.37 cover, soft 57.2% indirect, 8.37% directs, mildly

large 34.4% dealers.)

- Tsy had good $24B 3Y auction: 1.932 rate, good 59.1% indirect, avg 7.4%

direct, left only relatively small 33.56% dealers. Tsys late morning

sales/shorts as subway normalized. No react to midmorning BLS jobs data. Mkt on

hold for Wed FOMC mtg: 25bp rate hike expected, SEP nod to four 2018 hikes. 

- US EURODLR FUTR: Decent short end seller after higher LIBOR set; big 66k buy

EDZ8/EDZ9 followed. Buyer of 15K TUH 2Y Tsy futrs at 107-05.25; flatteners in

2Y, 3Y, 5Y vs. 10Y, 30Ys. Mild deal-tied hedges; light high-grade corp issuance.

Sellers in 5Y, 30Y Tsys. Late Eurodlr futures seller of 15,000 EDZ7s at 98.40.

TSYS 3PM ET: 2Y 1.823%, 3Y 1.937%, 5Y 2.157%, 7y 2.298%, 10Y 2.387%, 30Y 2.772%