*** Where'd the offer go? Tsys......>

US TSYS SUMMARY: *** Where'd the offer go? Tsys recover late, more a function of

evaporating offers than heavy buy interest though latter at play covering shorts

and taking profits on tactical steepeners set earlier in week. Curves finish

flatter after trading broadly steeper in first half:2s10s -0.921, 57.158

(62.336H/57.117L), 5s30s -0.127, 56.152 (59.513H/55.775L).

- Futures had quietly drifted to top end intra-day range heading into $20B 10Y

note re-open, traded higher after strong/stopped through w/2.579% rate (highest

since mid-2014), strong bid/cover of 2.69.

- Little react to Chicago Fed Evans, Dallas Fed Kaplan comments, Tsys held

lower/narrow channel after sharp sell-off during London hours on headline that

China may slow/halt Tsy buying. US$ slammed, equities knocked lower but

rebounded (emini -4.25, 2748.0), gold firmer/off highs (XAU +5.54 1118.32), oil

stronger (WTI +0.45, 63.41).

- Flow includes real$ selling old 3Y to buy new, fast$ selling old 10Y to buy

new, heavy deal-tied flow/hedge unwinds late.

- Late ylds: 2Y 1.964%, 3Y 2.071%, 5Y 2.322%, 7Y 2.456%, 10Y 2.540%, 30Y 2.880%