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Treasuries ended Tues lower but.....>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries ended Tues lower but managed to trim losses in half
after a fairly strong $12B 30Y bond reopening auction. The auction stopped
through to a 2.804% rate, with good 61.9% indirects, and OK 9.03% directs,
leaving manageable 29.1% for dealers to mop up. 
- Tsys began NY weaker after overnight 2way flows, then receded on mild sales
after 0.4% Nov. PPI, 0.3% Core. Tsys sales/shorts into 30Y auction, and sales in
10Y; others sold  2Y, 3Y, 5Ys. Stronger US$/yen pressured Tsys, as did mainly
firmer US stocks. Light US corporate bond issuance arose & mild hedging. 
- Heavy exchg traded optn volume: pick-up in low delta call buying targeting
1H'18; large >35k Feb 5Y put over risk reversal bought. US swaps wider.
- Heavy buying Mar'18 2Y futures buying short end (>50k TUH, 107-02.5 to-02.75)
spurred earlier modest curve steepen. Tsys post-auction steepener unwinds in
5/30Y, 2/30Y curve, and dip buying. Eurodlr futrs: heavy spd sales, >-20k
EDH8/EDH9, 0.400; >-15k EDZ8/EDH9, 0.055) 
- TSYS 3PM ET: 2Y 1.831%; 3Y 1.953%; 5Y 2.172%; 7Y 2.315%; 10Y 2.403%; 30Y
2.782%.

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