*** Tsys holding lower levels.......>

US TSYS SUMMARY: *** Tsys holding lower levels across the curve early in the

second half, off lows after a brief recovery to near steady around midmorning;

relative quiet ahead Jackson Hole eco/conf (schedule released tonight). 

- Muted react to weekly claims (+2k to 234k); Tsys rebounded briefly on below

exp'n July existing home sales -1.3% to 5.44m saar.

- Fed Kaplan CNBC interview, would not ruling out 3rd hike this year weighed.

Aside from Fed chairman Yellen speaking at Jackson Hole Friday at 1000ET,

Cleveland Fed Mester on Friday at 0830ET and Fed governor Powell at 1420ET.

- USD rebound vs. Yen added to consolidation sales; pre-auction short sets ahead

5Y TIIPs R/O.

- Large early Block sales, -10k TUU 108-07.5 at 0801ET and total -20k TYU 126-24

at 0805-0809ET

- Large pick-up in Sep/Dec futures roll volume, Sep quarterly option expire Fri

- WTI crude oil fell sharply on Hurricane Harvey concerns -- inventory likely to

rise w/Gulf of Mexico responsible for appr 45% of US refining/exporting

terminals.