Treasuries ended Wed higher on.........>

US TSY/RECAP: Treasuries ended Wed higher on risk-off mood, forced short-cover,

FX-tied buying as US$ ebbed vs. JPY, flatteners done, yields up 1.5-45bp. Tsys

began NY higher, flatter and then saw more risk-off buying in reaction to Tue

Trump saying wld force govt shutdown if needed to fund US/Mex wall; (Congress'

Ryan late afternoon said most don't want shutdown). 

- Asset allocation: Tsys bought/stocks sold, said traders with buy program in

Tsy futures 8:28am ET: 4,000 contracts bought in USU7 (Classic Bonds); 15,000

bought in TYU (10Y futures), 9,000 bought in FV 5Y fut. Tsys had FX-tied buying

amid weak US$/yen. EGBs rose too, risk assets suffered. 

US stocks retreated after Tuesday rally; Sep to Dec Tsy futures volume picked up

in earnest: +75K buy of FVU/FVZ at 9.0 early NY. Mild deal- tied flows. July new

home sales -9.4%. Fitch may review US AAA rating negatively if can't get debt

ceiling raise before "X" date wks away. Eurodlr futures higher too, late

flatteners. 

- T-Notes open Asia at 126.29+, 10-Year yield last at 2.166%