Treasuries open NY weaker after.....>

US TSYS SUMMARY: Treasuries open NY weaker after overnight two-way flows

followed US post-FOMC rally. Tsy 1pm ET $28B 7Y auction. 10Y Tsy yld 2.3bp

higher at 2.305%; 2/10Y curve steeper, 5/30Y flatter by 0.60 bps. 

- In TOKYO, Tsys saw initial buying in 2Y, 5Y  by Asian central banks, real

money accounts, credit funds. Sources then cited large curve flattener via

screens: -13k FVU7 blocked at 118-04.25 vs +3k USU7 blocked at 153-09; others

eyed cash 5/30Y flattener too. There was credit-tied selling in Tsys. JGBS end

higher. 

- In LONDON, Treasuries traded muted/slightly lower while EGBs and Gilts caught

up to Tsys. Tsys then slid to day's low on 10-yr Ultra futures block seller:

3,012 UXYU7 at 135-01+, then recovered on block buys in 5-yr and 10-yr futures:

3.35k FVU7 at 118-02.75 and 4.3k TYU7 at 125-27+. Bunds large block buy nr

162.29 resistance, peaked at 162.50. Data include wkly jobless claims and

durable goods. 

- US CORPS: Today: AT&T US$ benchmark 5Y Fxd/FRN, 7Y, 10Y, 20Y, 32Y, 41Y coming;

up to $12B size; BNZ Intl Funding bd. O/N RP: Tsy 5Y tight; 2Y ebbs.