Tsy futures trading steady/weaker,.....>

US TSY FLOWS: Tsy futures trading steady/weaker, long end underperforming again

as curve extends rebound off 10+ year flats from last week (2s30s +1.558,

97.882; 5s30s +1.898, 61.589), decent volume (TYH>350k). US Senate passed tax

bill; back to House for minor procedure vote then on to US Pres Trump. Equities

trading stronger (emini +8.0, 2692.0), gold stronger (XAU +4.30, 1266.05), oil

little firmer (WTI +0.20, 57.76).

- Asia, Tsys opened firmer, rebound after Tue's sharp sell-off, holding narrow

range into London open. Flow included credit and macro fund buying/covering,

Japanese insurance and pension fund buying out the curve.

- London, sellers emerged after steady/carry-over bid from late Asia trade, misc

acct buying 10s. Tsys evaporated, long end trailed lower core EGBs. Large Block

buy 14,560 FVH 116-04, fast$ buying 2s, prop acct 5s30s steepeners

- Swaps, spds running mixed, spd curve mildly flatter vs. steeper Tsys. Light

flow 2-way in 5s around 2.25873-2.26632%, $94k 2s3s5s fly/receiving the belly.

- Eurodollar futures, trading mildly weaker on light volume, 3M LIBOR climbs

+0.0159 to 1.6579% (+0.0466/wk).