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Another volatile day, Tsys back.....>

US TSYS SUMMARY
US TSYS SUMMARY: Another volatile day, Tsys back near post ECB/Twist story
highs. Heavy carry-over selling after Tsy ylds climbed to multi-year levels Wed,
TYZ volume >1.1M on open to 2.6M after the close. 10YY currently +.0057 at
3.1870% vs. 3.2305% high revisits mid 2011 levels.
- Early carry-over selling after Fed Chairman Powell's late Wed comment "funds
rate is likely to get above 'neutral' (i.e., above 3%) at some point, albeit
slowly." Curves continued to steepen. 
- Treasury futures bounced sharply by midmorning on the back of an MNI Sources
story in which the ECB is said to pondering "a possible Twist-like reinvestment
of its maturing debt portfolios next year." The story spurred heavy buying in
Bunds, with Treasury futures close behind.
- US equities cratered (w/gobal eq's) adding to midmorning bounce, weak EM
shares blamed. Ongoing flattener unwinds. Massive Tsy and Eurodollar option
flow, some profit taking on long put positions. Implieds steady/mildly weaker
ahead Fri's Sep NFP. Tsy cash/ylds: 2Y 99-24.25 (2.872%), 5Y 99-06.5 (3.047%),
10Y 97-11.5 (3.187%), 30Y 93-17 (3.343%).

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