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Tsy futures trading weaker, off........>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading weaker, off recent overnight lows on decent
volume (TYU just over 300k at moment), taking cue from sharp fall in UK Gilts.
Recent Block sale 13,820 TYU 126-02 (-5.5/32). Equities mildly higher/off recent
highs (emini +.75, 2473.0), gold lower (-1.74, 1267.11), oil softer (WTI -0.10,
49.06). Above expn's Apple earnings, rev's out late Tue.
- Asia, Tsys inched lower on quiet Asia open/very light volume, strong bounce in
Nikkei spurred some risk-on selling, Asia central bank sales in shorter
maturities and 5s, light/sporadic buying in 2s through 10s helped keep levels in
range, bank portfolio buying 5s.
- London, Tsys slipped lower while German Bunds drew good buying. Bank portfolio
sales in 7s and 10s reported, misc domestic acct buying on dips, credit-tied
buying as well.
- Swaps, running wider, spd curve flatter, sources reported macro acct paying in
the intermediates, 10s and 30s.
- Eurodollars, modestly lower across the strip, Whites-Reds (Sep'17-Jun'19)
outperforming, light volume. 3M LIBOR set +0.0022 to 1.3128% (+0.0022/wk).

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