Treasuries hovered near session.....>

US TSYS SUMMARY: Treasuries hovered near session high prices, after market

improved on midday/late morning buying after N.Korea reportedly sent out a

missile that landed in sea near Japan; mkt then saw some light profit-taking but

remains on edge, awaiting more Japan/N.Korea news. 

- Tsys began NY weaker, then moved higher after less than expected 2.6% 2Q GDP,

and also black boxes did FX-tied buying on weaker US$/yen, then saw light

profit-taking as US$ rose a bit. But market overall had quiet mood as summer

Friday. Tsys again saw FX-tied buying by black boxes as US dollar declined on

N.Korea missile news, and safe-haven buying too. 

- Tsy 10Y futures had 8:17am ET block buy done at 5,000 TYU7 at 125-20; later

Tsy call buy of 5,000 TYU7 126.75 calls at '13, at 11:32am ET - Eurodlr Dec8

futures bought at 98.24 for 9,000 contracts nr 9:04am ET 

- US HIGH-GRADE CORP. BONDS: No issuance as quiet summer Friday. 

- O/N REPO: 5Y Tsys note tightest, 2Y bid. 

- US EURODLR OPTIONS: Actions in puts, calls, straddles. 

- Fannie Mae priced $3B 3Y benchmark note:T+8.5bps