*** Another quiet session on........>

US TSYS SUMMARY: *** Another quiet session on light volume (TYH>780k) as Tsys

traded weaker, curves mildly steeper at the start of the two day FOMC policy

meeting, 0.25bp rate hike widely expected Wed.

- Carry-over weakness from overnight as Tys opened/traded weaker into midday

amid pre-auction hedging into the last leg of front-ended Tsy supply, dealer-led

short-setting/sales into the 1pm ET US$12B 30Y reopening. 

- Early sales on Nov final demand PPI shows strength to support the FOMC, +0.4.

Stronger US$ (vs. Yen, 113.568) and climbing equities (emini +6.75, 2671.25)

added to moderate risk-on tone. Modest deal-tied hedging in the mix.

- Heavy exchange traded option volume with concerted pick-up in low delta call

buying targeting 1H'18; large >35k Feb 5Yr put over risk reversal bought.   

- Heavy buying March'18 2Y futures buying short end (>50k TUH, 107-02.5 to

-02.75) contributed to modest curve steepening (2s10s +1.282, 57.84; 5s30s

+.468, 62.257). 

- Eurodollar futures, heavy spd sales, >-20k EDH8/EDH9, 0.400; >-15k EDZ8/EDH9,

0.055)