Treasuries end Thursday higher after...>

US TSY/RECAP: Treasuries end Thursday higher after month-end index extension

buying, morning and midday FX-tied black box buying (on weak US$/yen)) and weak

yr/yr 1.4% PCE core price index rise (least since 2015) and higher initial wkly

jobless claims. Mkt digested steady 58.9 MNI Chicago Business Barometer, firm

53.3 Bloomberg Consumer Comfort Index. 

- In between morning and midday FX-tied bid, late morning real$ and spec selling

in 10Y, 30Y while bank portfolio sold 30Y Tsys. 2nd round of FX-tied buying in

Tsys as US Tsy Secy Mnuchin said "weaker US$ is somewhat better for US trade." 

- Tsys had morning, afternoon month-end buying aiding back end; BBG Barclays

Tsys advance index estimate had a 0.11 yrs extension. - Tsy futures: Early large

blocks at 8:21am ET: 10,000 FVZ (5Y futures) at 118-12 and for 5,000 TYZ (10Y

Futures) at 126-23.5 (likely sales.) 

- Also Tsy futures had a 2:25pm ET 7,000 FVZ 5Y futures block buy at 118-15.25,

buy through -15 off at print time. Tsys futures saw late month-end buying before

3pm ET futures close.

- T-Notes open Asia at 127.00+, 10-Year yield last 2.117%