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Tsy futures trading mildly higher,.....>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading mildly higher, off late overnight lows on
modest volume. Equities lower (emini -8.25, 2444.5), gold higher (+4.80,
1289.94), oil softer (WTI -0.13, 47.70).
- Asia, slow start followed by risk off buying in 5s and 10s as US Pres Trump
threatened to shut down government if needed to get funding for US-Mexico border
wall; also indicated that US could eventually pull out of NAFTA. Modest FX acct
buying as USD dipped.
- London, early Tsy selling amid firmer European PMI data followed by bank
portfolio buying in 10s, real$ and hedge fund two-way in 30s. Sep/Dec Tsy
futures rolling gathers momentum.
- Swaps, spds running steady to mildly mixed, spd curve steeper. Sources
reported macro fund receiving in 2s, prop and option related receiving in 5s and
macro acct paying in 10s.
- Eurodollar futures trading marginally higher/near top end narrow range on
light volume.

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