*** Treasuries sliding, due to large........>

US TSYS: *** Treasuries sliding, due to large sellers of old cash 30Y bonds, and

speculation about tax reform/budget progress, also some advance rate-lock

pressure amid speculation that US corporate/sovereign bond markets will produce

long-end corporate supply next week. 

- The selloff "started overnight with the budget passage in the Senate, which

leads to tax reform hope thing," said one veteran trader. "What matters more to

the economy and path of rates, is not which knucklehead gets into the Fed Chair,

but the tax reform and regulatory reform," said the trader. "That's what has

been holding back this economy. The people in charge have heen blaming

demographics. But our fiscal and tax policy have been holding back US growth,

and now that's changing, we hope. That will be much more important whether it's

Powell or John Taylor in the Fed Chair."