Treasuries ended Tues lower, but.......>

US TSY/RECAP: 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.)

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

esp. after NY Fed Dudley yesterday. Flattener unwinds in 5Y, 10Y Tsys vs. 30Y;

prop, real$ and bank selling in 5Y, 10Y. Bank, insurer 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.

- T-Notes open Asia at 126.03+, 10-Year yield last 2.273%.