Treasuries ended Friday mixed,.........>

US TSY/RECAP: Treasuries ended Friday mixed, flatter into month-end, quarter end

and Japan half-year end. Quiet afternoon after morning selloff on strong 65.2

MNI Chicago Business Barometer read. Rates sold off too as WSJ said Pres Trump

met Thursday with former Fed Gov Kevin Warsh about Fed chair post. Chances of

Warsh frontrunner for post rose to 47%. MBS reversed gain on premise Warsh would

favor faster Fed balance sheet unwind. Tsys drifted off low on Fed Harker, who

though still eyed 3rd hike, said no Dec "magic", can wait, favours more

inflation data. 

- Moderate 2way w/short-cover/dip buys on core +0.1% August PCE price inflation.

Tsy flatteners via 2s, 3s, 5s and 7s vs. 30s. Prop, fast% selling on Warsh item

then misc buying/position square as mkt recovered. Desks eyed late month end

duration buying. Tsy futures: 2:49pm ET block buy of 9,500 in FVZ 5Y futures,

sell through done at 117-17; and 2:58 pm buy of 4,021 UXZ 10Y Ultra futures. 

- Tsy's open Asia at 125-05+, 10-Year Yield last at 2.334 and flat despite Pres.

Trumps tweets on Sunday highlighting lack on consensus in the White House on N.

Korea.