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*** After a steady/mixed open,......>

US TSYS SUMMARY
US TSYS SUMMARY: *** After a steady/mixed open, Tsys trading session highs into
midday, curve bull steepens (!), heavy futures volume (TYZ>1.6M so far) amid
ongoing Dec/Mar roll activity. 
- Reflation trade apparently back on as US$ rebounded, equities surged (emini
new high +15.25, 2617.0, after massive +50k buy/$5B+ nominal) and Tsys ylds
slipped (10Y 2.308%). Incidentally, gold also posted gains (XAU +1.8, 1296.35)
after massive $1B+ futures sale.
- Politics meets policy: confirm'n hearing Fed Chr nom Powell, Powell says case
for Dec rate hike "coming together". Underscores patiently normalizing rates; no
view on tax reform. Politics: US gov shutdown chances up after late morning news
that Hse Minority Leader Pelosi/Senate Min Leader Schumer ill skip meet w/Pres
after Trump Tweeted he didn't see deal anyway.
- Early two-way flow w/futures holding narrow range for much of fist half,
little react to second tier data and Fed speak (Dudley), no carry-over support
from higher Bunds. Better buying across curve by midmorning, fast-/real$,
bank/insurance portfolios, fast$ 2s10s flattener unwinds, pre-auction sales.

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