Treasuries ended Fri mainly.........>

US TSYS SUMMARY: Treasuries ended Fri mainly weaker except for the 30-year bond

as mild caution crept in ahead of next wk's Tue-Wed FOMC mtg and expected Fed

balance sheet reduction plans to start in Oct. 

- The US govt bonds began NY weaker, flatter, than drew dip buying on soft -0.2%

retail sales and a 5,000 5Y Tsy futures block buy, then 2way flows until black

boxes' FX-tied buying as US$ softened vs Jpn yen; black boxes sold as $ gained. 

- Tsy futures had quiet end to week, with mkts not reacting much to second N

Korea missile launch in 2 months over northern Japan. Aug Indl Prodn -0.9%; July

business inv +0.2%, as expected. 

- Flow 2way in short end to intermediates, position squaring into wknd, some

option tied selling, and steepener unwinds. 30Y bond at profit but 10Y, 3Y

auctions at loss. Tsys saw 2way program trading, buying in 5Y, 30Ys but selling

in 7Y, 10Y. Tsys improve off low amid MBS-tied cross-over bid as Fed bought

"almost $2.0 billion in Agency MBS," said traders. 

- TSYS 3pm ET: 2Y 1.384%, 3Y 1.525%, 5Y 1.804%, 7Y 2.032%, 10Y 2.202%, 30Y

2.771.