*** Tsys were mildly stronger, near....>

US TSY FLOWS: *** Tsys were mildly stronger, near mid-range on decent volume

(TYH>400k), trade lower on ECB headlines guidance could gradually shift in 2018.

Rates corrected higher after word Wed's after Bloomberg sources story China

would slow/halt Tsy purchases denied by China offcls. Rates had already

recovered from sharp bear curve steepener late Wed, surged higher Wed evening.

US$ rebound, equities firmer (emini +5.5, 2756.0), gold firmer (XAU +2.38,

1319.29), West Texas crude firmer again (WTI +0.40, 63.97).

- Asia, Tsys opened steady/weaker but surged higher on China FX regulator SAFE

comments on Bbg sources story. US$ bought, carry-over steepener unwinds, fast-

and real$ buying 5s and 10s, macro-fund selling 30s.

- London, early Asia bid initially faded, resumed soon after but offered on ECB

headlines. Sources reported bank portfolio 5s30s flatteners, real$ sold 5s.

Deal- and auction-tied hedging, final leg Tsy supply, $12B 30Y R/O.

- Swaps, spds running steady/mixed, narrow range, 2s5s steepener, 5s switch.

- Eurodollar futures, mildly higher out the strip/mixed in short end, EDH8

seller post 3M LIBOR set +0.0111 to 1.7202% (+0.0163/wk).