Treasuries ended Fri higher,........>

US TSYS SUMMARY: Treasuries ended Fri higher, flatter after relief bid as Fed

Chair Yellen did not touch on econ/mon pol issues in Jackson Hole speech. She

defended post-crisis financial controls. 

- Tsys began NY weak then had FX-tied buying as US$ weakened vs Jpn yen.

Volatility evaporated as rates adjusted higher but in range. Little/no react to

second-tier data. 

- Tsy futures: big block buy of 11.9k FVU 5Y 118-13.75, and two-way flow into

Fed Yellen; 2/10Y, 2/30Y, 5/30Y flatteners done; FX-tied buys in Tsys too in a

few rounds. Heavy Sep/Dec Tsy roll volume, Sep Tsy optn expiratn w/low pin risk 

- Tsys bid as Dallas Fed Kaplan said FFR terminal rate closer to 2.5% than 3%;

also correction of high asset valuations not systemic risk, may even be

"healthy"; said watching risks from debt build up. 

- Apparent fat-finger in Gold futures sent contracts tumbling $10 off highs

early trade(tapped 1280.0 vs. 1292.0 high), rebound to 1292-1294.0 area after. 

- ECB Draghi: global recovery firming up, but openness to trade under threat.

TSYS 3PM ET: 2Y 1.334%, 3Y 1.465%, 5Y 1.757%, 7Y 1.989%, 10Y 2.169%, 30Y 2.791%.