Tsy futures trading mixed, curve.......>

US TSY FLOWS: Tsy futures trading mixed, curve flatter as long end adds to Thu's

rally, currently trading bottom half overnight range on decent volume. Markets

growing inured to second N Korea missile launch over northern Japan. US$

stronger, equities weaker (emini -2.50, 2491.75), gold weaker (-6.94, 1322.75),

oil near steady (WTI +0.03, 49.92).

- Asia, extended weekend for Japan with Monday holiday. Carry-over long end

buying turned two-way into London crossover, sources reported selling in Tsys by

trading accounts and regional banks. US$ stronger vs. Yen (111.235).

- London, improvised explosive device detonates on Parsons Green London subway,

wires report 18 injured, 5th terrorist event this year. Gilts pressured BOE

Vlieghe turned somewhat hawkish and urged a future UK rate hike. Sources

reported foreign central bank selling in 2s and 5s, regional bank buying 5s and

10s. Overnight rep, 5s, 7s and 10s remain tight.

- Swaps, spds running mildly tighter amid light mixed flow; spd curve mildly

flatter on wk.

- Eurodollars, mildly lower across strip. 6M LIBOR jumps +0.0125 to 1.4711%