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Tsy futures are trading mildly.........>

US TSY FLOWS
US TSY FLOWS: Tsy futures are trading mildly lower, near overnight lows on light
volume. Equities mildly higher (eminis +3.0, 2473.25), gold lower (-0.63,
1269.02), oil lower (WTI -0.23, 49.48).
- Asia, Tsys gained in early overnight trade as N. Korea tensions spurred light
risk off buying. Bank asset managers bought 5s and 10s, misc Japanese accts
bought 10s, fast$ sold near highs w/bank portfolios.
- London, Tsys ebbed amid German Bund sales and selling in Tsy TYU futures,
real$ and bank portfolio accts 2-way in 10s, real$ selling in long end.
- Swaps, spds running wider, spd curve flatter amid rate paying in shorts to
intermediates, some deal-tied hedging in the mix w/frequent borrower ADB
expected to issue 5- and 10Y debt today.
- Eurodollar, mildly lower on light summer volume. LIBOR rates set steady in
1-6M.

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