Tsy futures blew past top end of....>

US TSYS SUMMARY: Tsy futures blew past top end of overnight range on knee-jerk

react to CPI data (July CPI +0.1%, core CPI +0.1%, both below expectations for

+0.2% readings), recedes to modestly higher levels soon after. Geopol-tied

safe-haven bid near abeyance.

- Long end bid evaporated, curve steepened as equities traded higher, FX-tied

buying eases as USD bounced. Flow two-way in 10s & 30s, props, fast- and real$.

- Curve held steeper levels w/long end near session lows midmorning, 2s-10s held

modest gains. Rebound in USD last few minutes spurred selling out the curve.

Sources also reported flattener unwinds, two-way in 5s and 10s, others unwind

longs as equities rebound following steep losses this week, squaring up ahead

weekend.

- Treasuries consolidated amid long end pressure showing up more in futures than

cash Tsys. Foreign central bank buying arose in US intermediates, paying short

end ahead next wk issuance.

- Limited react to Fed speak, Kaplan and Kashkari both note lagging inflation,

labor slack.