*** Treasuries have chopped lower this......>

US TSYS: *** Treasuries have chopped lower this morning with a host of causes:

lower initial weekly jobless claims, SF Fed Williams' caution that US real

estate and bond prices near all-time highs amid low rates, Philly Fed Harker

saying US is "point of maximum employment" (but he adds not all such jobs pay

"living wage" or a "good job" (Bloomberg)). 

- Tsys drew hedge fund, real money and foreign central bank selling in cash 7Y

to 10Y zone. Some selling could have been a set-up to hedge against a potential

strong Friday Sept. jobs report, said traders. 

- Tsys also pressured, too, amid some compromise signals on the Spain/Catalan

situation (division among Catalan leaders). And also US stocks are "charging

higher," as one trader put it.

- Meanwhile some more steepening done in 2/10Y, 2/30Y and 5/30Y cash Tsys.