Treasuries ended Fri weaker, US........>

US TSY/RECAP: Treasuries ended Fri weaker, US stocks higher amid Fed Chair

speculation, and Thu GOP-led Senate passage of fiscal 2018 budget; spurred tax

reform hopes. Rising chances of Dallas Fed Powell as next Fed chair (58%, up 19%

after Pres Trump met Fed Chair Yellen late Thu) added to move, with Tsy futures

making new lows for week. 

- Tsys rose on news Fed Chair Yellen at White House then fell as we heard she

was meeting Cohn, not Trump. Fox Bix News: Trump may pick Taylor and Powell to

Chair or VC (or vice versa), as that would placate. DJIA briefly hit new

all-time high 23,317.29 at 2;24pm ET). 

- Tsys: large sellers of old cash 30Y bond, real$, fast$ sold cash long end

Tsys, 5/30Y flattener unwind; TIPS outperform nominals. 

- Massive sale Eurodollar futures, -92k EDZ7 mostly at 98.495 and some -30k

Mar18 from 98.355 to 98.35. Heavy option volume, some put sales/taking profits.

- Swap spreads tighter amid decent two-way flow, receivers in front end,

intermediate payers, 2way curve and fly flow on light size.

- T-Notes last at 124.24+ in Asia, 10-Year yield last at 2.384.