Tsy futures trading weaker, near.......>

US TSY FLOWS: Tsy futures trading weaker, near middle overnight range on

moderate volume, Tsys trailed bounce in EGBs on Reuters report that ECB Draghi

will not make new policy comments at next week's Jackson Hole economic

symposium. Equities firmer (emini +4.0, 2467.75), gold little lower (-1.0,

1270.52), oil little higher (WTI +0.13, 47.68).

- Asia, early two way flow kept rates in narrow range, credit-tied selling

w/ready bids below, Asian end users bought 10s.

- London, sources reported end-user buying in the short end, real$ selling in 5s

and 10s early in London trade. Flurry of buying on Rtrs story Draghi will hold

off on policy "debate" until Autumn, foreign central bank buying 2s and 3s,

fast$ bought 5s, misc accts bought 10s and 30s.

- Swaps, spds running steady to mildly wider out the curve, light deal-tied

paying.

- Overnight repo, 2- and 5Y notes both tight.

- Eurodollar, steady to mildly lower out the strip; 3M LIBOR climbs +0.0025 to

1.3167% (+0.0017/wk).