Tsy futures trading firmer, off late...>

US TSY FLOWS: Tsy futures trading firmer, off late Asia session highs on decent

volume (TYZ w/435k). EGBs firmer, sovereign spds wider vs. Bunds, following ECB

QE-taper chatter overnight -- ECB member, Liikanen said ECB decisions could be

taken in December. Equities weaker (emini -9.00, 2455.75), gold firmer (+5.28,

1354.57), oil little weaker (WTI -0.17, 48.92).

- Asia, early safe-haven bid amid ongoing N Korea tensions, concern over

Hurricane Irma, not expected to make Fla landfall until late Sat/early Sun.

Sources reported regional bank buying Tsys cash and futures, short covering,

prop and real$ buying 10s.

- London, Tsys spiked higher ahead the London open, Tsys futures drew fast money

buying in intermediates. Sources reported credit tied buying, MBS-tied buying in

cash 10s as yield nears key 2.0% level, currently 2.033%.

- Swaps, spds running mixed, spd curve unwinding a portion of week's flattening,

modest receivers and payer unwinds in 2s and 5s, light deal-tied flow after

heavy issuance this week tops $55B over 3 sessions.

- Eurodollars,firmer, middle O/N range, good volume, Dec hike% down to 18.0.