Tsy futures trading steady to weaker...>

US TSY FLOWS: Tsy futures trading steady to weaker out the curve w/German and UK

rates, at/near recent overnight lows; volume running at much more normal levels

with Dec/Mar roll running out of steam. Equities adding to Tue's late rally

(emini +3.0, 2629.0), gold little firmer (XAU +0.23, 1294.20), oil little weaker

(WTI -0.17, 57.82).

- Asia, Tsys opened w/mild safe-haven bid after N Korea missile launch. Flow

included pension and insurance portfolio buying in long end, some early

selling/profit taking by US accts on highs, 5s30s steepeners fading the

flattener move.

- London, Tsys traded weaker into London hours w/Gilts and Bunds, dealer and

fast$ buying in 2s and 5s, credit-tied buying in the belly, light deal-tied

flow, fx-acct selling as US$ rebounded.

- Swaps, spds running mixed, intermediates marginally tighter, spd curve

flatter. Flow included light deal-tied flow, rate paying in 5s and 10s.

- Eurodollar futures, trading steady to marginally weaker across the strip. 3M

LIBOR sets +0.0018 to 1.4806% (+0.0130/wk).