Tsys extend to new overnight........>

US TSYS SUMMARY: Tsys extend to new overnight highs following latest tweet from

US pres Trump apparently taunting Syria and Russia about launching missiles at

Syria in retaliation over gas attack. Prior to tweet, modest sideways trade on

light volume (TYM was just ticking over 200k) with many sidelined ahead FOMC

minutes later in day, CPI data (0.0% est). 

- US$ index lower (DXY -.082, 89.505); equities weaker (emini -28.5, 2626.5);

gold stronger (XAU +10.84, 1350.31); West Texas crude adding to Tue's strong

rally on Iran tensions (WTI +0.72, 66.23 -- new highs for year/near 3-year

highs).

- Asia, Tsys opened mildly weaker overnight, drifted sideway to marginally

higher into the London crossover; mild 2-way flow from fast$ in 3s and 5s, light

deal-tied flow.

- London, drifted off steady levels on narrow range until the missile tweet woke

markets up, short cover/risk-off buying across curve. Prior central bank buying

short end, bank portfolio buys 2s, 5s and 30s. Selling ahead today's $21B 10Y

note auction R/O. short end Eurodlr selling post LIBOR set.