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‌‌(U1)‌‌ Key Directional Triggers Remain Intact

US TSY FLOWS: Tsy futures trading weaker, at/near recent lows on moderate
volume, risk-on w/geopol and  domestic turmoil on hold for the moment; equities
stronger (eminis +14.0, 2454.0), gold weaker (-10.05, 1279.30), oil weaker (WTI
-.33, 48.49). USD rebound, FX accts adding to current sale.
- Asia, some safe haven unwinds even as Japan deploys Patriot anti-missile
batteries in 4 western prefectures. China bans some N. Korea imports (lead, "sea
products"). Japanese banks and Mideast central banks sell Tsys, MBS-tied selling
and end user selling of MBS. Japanese 2Q GDP rose to 4.0% annualized. 
- London, carry-over weakness, Tsys trail softer Bunds and Gilts, stronger
stocks spurring some risk-off unwinds, fast and real$ sold 10s.
- Swaps, spds running steady to marginally mixed, light rate-payer unwinds in
2s, deal-tied selling in 10.
- O/N Repo, 2Y remain tight
- Eurodollars, lower, O/N session lows, large sale appr -19.8k Mar'18, 98.50,
partially tied to -4,000 Mar'18/Red Sep'18 flattener. Final set' Aug'17 serial
future, 98.6858. 
MNI Chicago Bureau | +1 312-431-0089 |