US Treasuries improved in quiet.....>

US TSYS SUMMARY: US Treasuries improved in quiet action Mon amid muted 2way

flow. Mkt began NY with most issues higher except 10Y, 30Y (steady). End-user

buying occurred in long end, mkt improved amid less corporate rate-lock hedging

pressure than last Fri. Tsys bid as cash 10Y rejected 2.40%, spurring buying as

players viewed mkt may not go there yet. 

- US high-grade corporate bonds: moderate issuance Mon: Citi 5Y, 10Y; Honeywell

2Y/2Y FRN, P&G 2Y, 3Y, 30Y; BB&T lg 3Y/FRN, 7Y Mon (ADB, Canada Pension Plan

Investmt Bd Tues, China US$ sovereign bond ($1B 5Y, $1B 10Y) Thu. Mon 3m T-bill

auction stopped thru to 1.105%, highest yldng 3M bill since July 24th. 

- US SWAPS: $480M 5Y payer (from 2.097% to 2.0825) and $340M 10Y paper (from

2.345% to 2.34705%) prior to 11:25 a.m. ET. 

- UK Gilts ended near intra-day highs, aided by Tsys technical bid. US Eurodlr

futures had good early bid: 20,000 bought Dec'17, 98.495. Fed Funds futures: big

sprd buy before 10:27am ET: 22,000 FFZ7/FFF8, 0.095. Gold rose with 18.5K gold

contracts traded on Comex around 11:55am ET, then moved off high; some eyed

N.Korea jitters.