Treasuries opened NY higher after...>

US TSYS SUMMARY: Treasuries opened NY higher after seeing buying starting soon

after Tsys bottomed around 2:30am ET 10-yr note 99-05+/2.345% yield with

sharpest gains around 3:46am ET; 10-yr now 2.309%. Fed Chr Yellen meets with US

Pres. Trump Thurs, the last of his five finalists to interview for Fed Chr post.

- TOKYO: Tsys began steady/mixed after Wed decline, with rangebound action

developing a late bid. Tsys saw mixed flows; foreign central bank buying short

end, other buying in 5Y notes vs. selling out the curve. Regional banks and

macro funds sold Tsys into strength. 

- LONDON: Safe-haven bid bolsters Tsys as Spain said will invoke Article 155 as

Spain/Catalan rift deepens. Asset allocation occurs from stocks into Tsys. Macro

fund Tsys buying while bk portfolios 2-way in 10Ys. New Zealand First before 2am

ET said would join labor to form coalition govt, which sent NZ$ choppy. Tsy 10Y

futures saw recent block buy,5,000 TYZ at 125-11 at 7:33am ET. Real$ did mixed

flows in 3Y note. US SWAPS: Wider; risk off outweighs deal-tied compression. 

- OVERNIGHT REPO: Tsy 2Y, 3Y, old 3Y, old 5Y, old 7Y tight.