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Treasuries traded mainly............>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries traded mainly weaker/flatter midday Mon after mkt
ebbed overnight from 2am ET session high price then sank more in early NY. Tsys
had early NY choppiness amid shifting German politics; seems it's difficult for
German leader Angela Merkel to form a coalition govt. But German President said
he wants various parties to try a coalition again, and to remember
responsibilities. Brisk selling of Italian BTPs followed his talk. 
- Tsys saw black-box selling as US$ rose vs. Jpn yen as correlated trade
revived, first selling wave starting 8:26am ET, then a wave midmorning. Traders
eyed worries on 2018 rate hikes. Goldman Sachs expects 4 rate hikes; head trader
said Fed dots price in 3 hikes, while Tsys only priced in 1-2. Some unload Tsys
positions amid bets on whether tax reform plans will/won't pass Congress; (House
passed it; House, Senate out this w). 
- Tsy futures had 9:31am ET block: 5,000 TYZ at 124-26.5, crossed on offer. Cash
Tsys: 5/30Y, 2/10Y flatteners. Dec/Mar Tsys futures roll picks up in earnest:
heavy volume. Dec Tsy optns expire on short Fri. RP: 5Y, 10Y tighter. CORPS:
Brisk issuance.

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