Tsys rebound off of lows after US......>

US TSY/RECAP: Tsys rebound off of lows after US Pres Trump confirmed that the US

will exit the Iran nuclear accord and will re-impose sanctions on Iran, although

the move was largely unwound. USD strength had weighed on Tsys in early dealing.

- Trade had been muted with accounts sidelined running into the decision.

- Fed Chair Powell didn't touch on MonPol in his address.

- Flow included FX-tied selling as the DXY advanced yet again, while prop &

real-money sales were seen in 10s & 30s.

- Some pre-auction short selling was seen in 3s ahead of supply, with the

auction providing in-line results in terms of a minor tail & steady cover

ratio/dealer takedown.

- The front two Eurodollar contracts were elevated by a higher 3-Month $LIBOR

fix, while the rest of the strip traded lower.

- There was heavy Eurodollar put option flow targeting a March 2019 rate hike.

- T-Notes last at 119.14, US 10-Year yields closed at 2.976%.