Treasuries end Wed higher but off...>

US TSYS SUMMARY: Treasuries end Wed higher but off morning high after mkt

consolidated on post-auction redistribution sales, so-so $23B 10Y auction. Tsys

began NY higher after overnight safe-haven  bid on US Pres. Trump warning of

"fire and fury" if N.Korea did not stop threats; N.Korea then threaten US's

Guam. That pushed bonds up globally, stocks lower. But then Tsys faded off high

on deal-tied hedging, pre-auction shorts into 10Y, some rally profit-taking.

Tsys digested 0.6% 2Q Unit Labor Costs, 0.9% nonfarm productivity. 

- Long-end-led rally set new highs into NY open, upside call skew bid vs. OTM

puts. Real$, fast$ buying occurred, and short-covering in 10Y to long end; props

buying 2Y, 5Y. Later Tsys futures and cash market saw mild intermittent

profit-taking. US Swap sprds widened early on supply-tied paying, later pared

move. 

- 10Y auction tailed to 2.25% rate, somewhat soft 57.9% indirects, but good

6.81% directs, but still dealers had to mop up a fairly large 35.3%; but 10Y

sale later had profit. TSYS 3PM ET: 2Y 1.335%, 3Y 1.495%, 5Y 1.797%, 7Y 2.055%,

10Y 2.241%, 30Y 2.818%.