Treasuries ended Mon mainly.........>

US TSYS SUMMARY: Treasuries ended Mon mainly weaker/flatter after drifted from

2am ET session high price then ebbed more in early NY action, then tight range

since noon ET. Tsys began NY higher, choppy early NY as markets digested

shifting German politics, tough for German leader Merkel to get coalition govt.

German Pres: wants various parties to try coalition again. Tsys black-box sales

as $ rose vs JPY:correlated trade: first selling wave starting about 8:26am ET,

another midmorning. 

- Traders nervous on 2018 rate hikes. GS expects 4 hikes; a head trader at

another firm said Fed dots now price 3 hikes for 2018, while Tsy priced in 1-2.

Some exit Tsys amid bes on tax reform, which cd aid US stks. House, Senate out. 

- Tsy futrs had 9:31am ET block:5,000 TYZ at 124-26.5, crossed on offer. Cash

5/30Y, 2/10Y Tsys flatteners. Dec/Mar Tsys futrs roll picks up in earnest: heavy

volume. Dec Tsy options expire Fri.  

- US SWAPS: Mostly wider, curve steeper, 10Y taps disinversion; 30Y spd closes

in on -20: 2yr+ high. US STOCKS: DJIA up 0.38%. - TSYS 3PM ET: 2Y 1.755%; 3Y

1.855%; 5Y 2.092%; 7Y 2.262%; 10Y 2.368%; 30Y 2.787%