Treasuries traded roughly...........>

US TSYS SUMMARY: Treasuries traded roughly midrange, still weaker but well off

morning selloff low, aided by dip buying, block trade buys in Tsy futures and

FX-tied bid. 

- Treasuries opened NY weaker (after overnight risk-off bid unwind as N.Korea/US

calmer.) Mkt slid on higher 0.6% July retail sales, which fueled fear of late

2017 rate hike esp. after NY Fed Dudley. Flattener unwinds arose in 5Y, 10Y Tss

vs. 30Y; prop, real$ and bank selling in 5Y, 10Y. Bk, insur portf sales arose in

30Ys. Deal tied selling occurred earlier, with talk MBS acct selling out curve. 

- Tsy futures saw 9:02am ET sale of 8,000 TYU 10Y futures, 9:18am ET

5,000-contract TYU buy at 126-02, and 10:22am ET buy of 5,000 TYU, 11:42am ET

block buy of 10,000 FVU 5Y futrs. 

- Tsys short-cover, FX-tied buying amid softer US$/yen, real$ buying in 7Y, 10Y

Tsys. End users bought front end earlier. Foreign central banks did mixed front

end flows. Some thought Street did steepeners Fri before Tues heavy long-end-wtd

high-grade corp. bond issuance. Sep- Dec Tsy futures roll: 1-2% of Sep OI rolled

so far.