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Treasuries ended Fri higher after...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries ended Fri higher after short-covering/safe-haven
buying on US/N.Korea tension and amid soft 0.1% July CPI/Core CPI. Treasuries
began higher, flatter after o/night safe-haven bid on N.Korea then early buying
after CPI. But market dipped midmorning on speculation of China/Russia
compromise plan for N.Korea/US, also rate-locks cited and profit-taking on
safe-haven rally. Long end esp. sold, curve steepened, equities higher, FX-tied
buying eases as USD bounced. Flow two-way in 10s & 30s, props, fast- and real$. 
- But Tsys go back to safe-haven: Europeans covered Tsy shorts, US accts too.
Sources cited flattener unwinds, 2way 5s and 10s, others unwind longs as
equities rebound. Foreign central bank buying in US intermeds, paying short end
into next wk corp. issuance. 
- Tsys 9:35am ET buy of 8,400 FVU 5Y, 8:33am ET buy of 5,000 TYU 10YT, 8:32am
steepener (buy 15K TYU/sell 5K TYU), 8:16am apparent sale of 6,420 FVU 5Y
futures. TYU 10Y futures 1:30pm buy of 5,055 10Y futures. 
- Fed's Kaplan, Kashkari note lagging inflatn, labor slack. TSY 3pm ET: 2Y
1.294%, 3Y 1.444%, 5Y 1.740%, 7Y 1.999%, 10Y 2.189%, 30Y 2.787%

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