Treasuries held a tight higher......>

US TSYS SUMMARY: Treasuries held a tight higher range Monday amid light risk-off

mood (N.Korea, US political jitters).  Tsys began higher, underpinned by risk

off mood as US and South Korea began ten days of military drills; N.Korea not

happy but only saber-rattling talk. Tsys improved with EGBS but markets

basically kept a range, awaiting Friday Fed Chr Yellen and ECB Draghi speeches. 

- AP said a Spain police operation done west of Barcelona, while Spanish

newspaper said alleged fugitive in last week's van attack on city, suspect

Younes Abouyaaqoub, was captured. 

- US Eurodlr futures near session highs after earlier good buys in back end of

white, red and green contracts, esp. Dec18, Mar18, Jun18 and Mar19 contracts.

Talk of large 30Y US swap trade at 10:57am ET.

- Tsys saw afternoon short-cover/dip-buys on risk-off mood, weak NYMEX crude oil

(-2.84%). Oil earlier retreated in technical profit-taking. Tsys had earlier

light FX-tied buying as US$ receded vs. yen. T-bills saw earlier buying after

good 3M bill auction, $5B cut to Tue 4-wk bill auction size. Latest Sep/Dec Tsy

futures roll volume: TYU/TYZ about 8,500 from 9.5 to 10.0, 9.75 around 10am ET.