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*** Tsy futures trading holding.....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsy futures trading holding near session lows ahead the
$24B Tsy 3Y note auction, tentative risk-on more like unwind of last week's
risk-off move w/no developments w/N Korea over weekend (UN vote on NK sanctions
today), Hurricane Irma weakening as it moves inland.
- Rates opened weaker on modest volume, partially following weaker EGBS,
sovereign peripherals tighter vs. Bunds. No data and Fed in black-out period
ahead Sep 20 FOMC tethered volume.
- Pre-auction short sets, high-grade corp issuance hedging added to pressure as
did rebound in US$, strong rally in equities (emini +25.0, 2486.0), gold weaker
(-13.32, 1333.13) while oil surged off lows to 48.14, +0.66. Better buying in
wings, T-bill proved quiet but had a better tone. The two-year notes drew buys.
- Swap tighter levels, also on risk-off unwind, intermediates lagging wings by
late morning, modest flow included better payers in 5s, 7s and 10s.
- Eurodollar futures also reverse Fri gains, heavy front end sales, over 100k
Sep'16 98.68-.682. Rate hike  remains 0.0% for net two FOMCs, Dec 13 FOMC back
up to 30% from 18.8% last week.

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