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After a mixed open, heavy pressure.....>

US TSY FLOWS: After a mixed open, heavy pressure in the long end dragged balance
of rates lower after the US Tsy 20Y annc bond late Thu. Immediate result was
steeper curves w/better long end selling, dealer research expressing interest in
10s20s30s flys, 10s20s steepeners and/or 20s30s flattener. 
- Anticipated by dealers as a better/more liquid alternative than 50- or 100Y
bond, will likely be annc'd at the Feb refunding for auction in May. 
- Quiet end to the week -- despite the broad bear steepener move w/the long end
off session, heavy volumes before midday w/ TYH>925k but only 1.2M by the close.
Mkt depth thin, flow largely position squaring (and flattener unwinds) ahead the
long weekend, option hedging along with steepeners. Position squaring/clean-up
ahead the long weekend amid a bit of risk-on unwinding.
- Note, Fed media blackout kicks off early Saturday and runs through January 30.
- The 2-Yr yield is up 0.2bps at 1.5674%, 5-Yr is up 0.5bps at 1.6294%, 10-Yr is
up 2.5bps at 1.832%, and 30-Yr is up 3.7bps at 2.2943%.

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