Tsys were holding weaker levels by.....>

US TSY/RECAP: Tsys were holding weaker levels by the bell, just off of the early

lows on moderate volume, with the US 10-Year Tsy yield back above 3.00%.

- It was a pretty quiet session on net, with focus on Thursday's US CPI release,

as the cash curve steepened a tad.

- Fed voter Bostic suggested that inflation is likely to run above 2% "for a

while", adding that that concerns of a trade war between US & its allies are

"overshadowing" the positive effect of tax cuts.

- The latest 10-Year note auction passed smoothly with a steady bid to cover

ratio, minor tail & smaller takedown as indirect participation edged higher.

30-Year supply comes on Thursday.

- Two-way flow was seen after better early selling in the long end, with modest

deal-tied flow, pre-auction short setting/unwinding.

- There was decent option volume on mixed trade that favoured downside put

buying over calls, particularly in the late 2020 sector of curve.

- The Eurodollar strip was mostly weaker, as Blues & Golds underperformed.

- T-Notes last at 119.07+, US 10-Year yields closed at 3.004%.