US Treasuries remain weaker,........>

US TSYS SUMMARY: US Treasuries remain weaker, steeper after overnight selloff in

Asia as GOP-dominated US Senate passed the fiscal 2018 budget. 

- TOKYO: Tsys opened near steady, then had a steepening selloff after U.S.

Senate adopted budget resolution. Sources reported brisk selling across the

curve, fast$ and regional bank selling in 10s and cash 5s and 10s. Bank sellers

occurred too in 7Ys. US swaps had paying. 

- LONDON: Tsys remained weaker, as did EGBS, in ongoing reaction to budget news,

which holds up the prospect, though challenging, of potential tax reform/cuts in

months ahead. Tsys saw choppy trade: fast$ and prop acct buying, and

profit-taking at the lows. Mild options-tied hedging occurred amid renewed heavy

low-delta put buying. FX-tied selling in Tsys as US$ rebounded vs. Jpn yen. 

- US SWAPS: Mostly tight; overnight light rate paying, deal-tied hedging in 2Y,

5Y; fast$ payer unwinds in 10Y. 

- OVERNIGHT REPO: Current 3Y note trades at negative rate, -0.25%.