Tsys weaker, just off late session.....>

US TSY FLOWS: Tsys weaker, just off late session lows by the bell/extended lows

from late morning, risk-on tone gelling as S&P futures recovered early

losses/traded higher w/DAX futures. Eq bid also partially tied to WSJ article

China looking to moderate trade threats "soothe relations w/US multinationals". 

- Little react to data pick up (Redbook retail sales, wholesale inv's/sales,

JOLTS); Tsy held lows after $35B 3Y auction tailed slightly, awarded a 2.821%

rate vs. 2.820% WI.

- US$ volatility O/N, dollar index well off O/N lows DXY +.095, 95.245

(94.882L/95.353H), $/Eur -0.0007 at 1.1586, $/Yen +.47 111.60; equities

weak/near firm (emini +11.5, 2891.75 vs. 2867.25L); Gold (XAU +0.58, 1196.45);

West Texas crude surged as Hurricane Florence threatened Eastern seaboard (WTI

+1.96, 69.50). 

- Flow included fast- and real$ buyers on lows in 5s, 10s and 30s. Prop accts

2-way in short end, pre-auction and corp-deal-tied hedging in mix. Curve

steepeners via options and futures (2s10s). Tsy cash/ylds: 2Y 99-24.5 (2.744%),

5Y 99-14.25 (2.869%), 10Y 99-03.5 (2.977%), 30Y 97-18.5 (3.123%).