Tsy futures trading higher, near.......>

US TSY FLOWS: Tsy futures trading higher, near late overnight highs, curve

flatter w/long end outperforming. Tsys followed EGBs/Bund higher earlier, TYZ

surge full point after German election results. Safe haven support on Mid-East

tension (Iraqi Kurds independence referendum). Equities softer(emini -1.25,

2498.25), gold weaker (-3.01, 1294.39), oil firmer (WTI +0.48, 51.14).

- Asia, Tsys opened steady to mildly higher, fast$ sellers into strength, early

safe haven unwinds after last wk's rally, Asian end-user selling in 5s. Japan PM

Abe to dissolve lower house, change tax policy.

- London, Tsys surged w/Bunds as Angela Merkel gained a fourth term as prime

minister, far-right AFD party gaining enough votes to get seats in the

Bundestag. Flow included fast- and real$ buying in 5s and 10s, domestic bank and

real$ buying 30s, mild end user selling into rally. Corp, Tsy supply-tied sales.

- Swaps, spds running mildly tighter across the curve, flow included bank

portfolio receiving in 10s.

- Eurodollar, higher across the strip, Blues-Golds (Dec'20-Sep'22) leading

(+0.030-0.035), 3M LIBOR +0.0003 to 1.3297% (+0.0055 last wk).