***Treasuries prices midday Fri.....>

US TSYS SUMMARY: ***Treasuries prices midday Fri remained near session high

after morning rally on 0.5% Sept CPI as mkt focus on tame 0.1% Core CPI, which

calmed inflation fear; also was less-than epxected 1.6% Sept. retail sales.

- Tsys saw brisk fast money and CTA/black box short-covering buys after CPI, and

FX-tied buying too in Tsys by black boxes as the US dollar weak vs yen. Most

buying done in 10Y Tsy futures, which led mkt up. Technical buying too.

- However some real money and hedge funds sold into rally after CPI or after

midmorning strong 101.1 Oct Univ. of Michigan consumer sentiment; but such

profit-taking proved brief, and mkt did not back off much. 

- Tsy 10Y TYZ7 futures had 20K futures bought on screen from 125-22+ to 125-23

before 9:29 am ET. Earlier two 5,000-contract blocks in TYZ7 10Y futures around

CPI: first block before CPI, after-CPI block apparent buy. Pre-CPI, different

big sell block in 2Y Tsy futures: 22.7K TUZ7 at 107-23+, 8:28 am ET. Tsys had

8,160 FVZ7 5Y Tsy block buy done at 117-17.75 at 11:02am ET. And large Tsy

futures block of 43.7K TYZ7 124.50 puts at '15 vs. TYZ7 at 125-22+; looks like

13K TYZ7 124 puts bought on screen same time too.