US Treasuries hovered near sesion...>

US TSYS SUMMARY: US Treasuries hovered near sesion prices highs after rise on

worries on Iran and North Korea, and post-auction relief buying spurred by

strong $12B 30Y reopening auction. Afternoon safe-haven bid in Tsys amid news US

Pres. Trump will announce Fri 12:45pm ET on Iran plans, and that USGSG could not

confirm if a N.Korea  earthquake was manmade or not. Some FX-tied buying also

came in as US$ receded vs. Japanese yen. 

- That followed solid 30Y bond auction: stopped through to 2.870% rate, 2.750%

cpn, strong 62.8% indirects, 10.6% directs, leaving only 26.6% for dealers to

mop up. Early afternoon saw 2/30Y, 3/30Y flatteners, short-covering and dip

buying after auction. Some had felt buyers would wait for Fri CPI. 

- Morning pre-auction sales into 30Y auction; Asia bid in 2Y,5Y in early NY;

2way 30Y hedge fund flows, mixed flows in shorter issues. Tsys sold briefly on

high 0.4% Sep Core PPI, lower initl wkly jobless claims. Also 8:21 am BST/3:21am

ET block buy in 10Y Tsy futures (TYZ7) for 4,364 contracts. 

- US swaps had 11:16 am ET $163,200 DV01 8/9/10Y  butterfly, paper paying belly.

German Bunds gyrated, Bund futrs block buy of 2,000 RXZ7 at 161.39 at 7;25am ET.