Treasuries ended Tues lower, but....>

US TSYS SUMMARY: Treasuries ended Tues lower, but well off morning selloff lows,

after dip buying, block trade buys in Tsy futures and FX-tied bid. Treasuries

opened NY weaker (after overnight risk-off bid unwind as N.Korea/US calm.) Mkt

slid as higher 0.6% July retail sales fueled fear of late 2017 rate hike esp.

after NY Fed Dudley. Flattener unwinds in 5Y, 10Y Tsys vs. 30Y; prop, real$ and

bank selling in 5Y, 10Y. Bk, insur portf sales arose in 30Ys. Deal tied selling

occurred earlier, with talk MBS acct selling out curve. 

- Tsys saw 9:02am ET sale of 8,000 TYU 10Y futures, 9:18am ET 5,000-contract TYU

buy at 126-02, 10:22am ET buy of 5,000 TYU, 11:42am ET block buy of 10,000 FVU

5Y futrs. 

- Tsys short-cover, FX-tied buying amid soft US$/yen, real$ buying 7Y, 10Y Tsys.

End users bought front end earlier. Foreign central bks did mixed front end

flow. Some thought Street did steepeners Fri before Tue long-end-wtd corp. bond

issuance. Sep- Dec Tsy futures roll: about 1-2% of Sep OI rolled so far. 

- Amazon launched a $16B 7-part high-grade US$ debt deal amid heavy issuance.

Tsys 3pm ET: 2Y 1.351%; 3Y 1.513%; 5Y 1.817%; 7Y 2.084%; 10Y 2.264%; 30Y 2.840%.