Tsy futures trading firmer, just off...>

US TSY FLOWS: Tsy futures trading firmer, just off top end late overnight highs,

recovering portion of Wed's second half slide on word of 3M debt ceiling

extension. EGBs quiet ahead ECB policy annc. Equities little weaker (emini

-0.25, 2463.5), gold stronger (+5.15, 1339.34), oil weaker (WTI -0.08, 49.08).

- Asia, safe haven bid for Tsys return after North Korea said will respond to US

pressure with counter measures; pundits expecting some show of force around Sep

9 National Day holiday. Flow included prop and bank buying in 10s, insurance

portfolio buying 10s and 30s.

- London, carry-over bid in early London hours, rates ticked higher last couple

hours as USD receded vs. Yen, Euro. Flurry of short covering deal-tied flow and

fast$ buying in 10s. Wall Street Journal said Gary Cohn no longer in the running

for Fed Chair but that John Taylor, Larry Lindsey and and Kevin Warsh are the

potential choices now.

- Swaps, spds running mildly wider, spd curve flatter, modest paying in 2s, 5s

and 10s over last hour.

- Eurodollars, mildly higher, top end O/N range on moderate volume Whites-Reds.