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US Treasuries hovered near sesion...>

US TSYS SUMMARY
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.

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