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Carry-over risk-off with Tsy futures...>

US TSY FLOWS
US TSY FLOWS: Carry-over risk-off with Tsy futures trading stronger on heavy
volume (TYZ>500k), just off recent highs with long end outperforming. The 2s10s
yld curve flattest in decade, 0.667bp; 2Y yld at1.671%, 10Y yld -.0301 at
2.3416%, 30Y yld -.0313 at 2.7987%. Equities selling off (emini -13.0, 2565.0),
gold firmer (XAU +4.75, 1285.10), oil weaker (WTI -0.58, 55.12).
- Asia, bid resumed after NY close, rates ratcheting higher on back of weaker
global equities and weaker US$ (vs. Yen, 112.7325). Sources reported strong
buying from pension funds and insurance portfolio.
- London, rates climbed higher w/core EGBs. Flow: fast$ and prop buying 5s and
10s, insurance portfolio, real$ bought 10s, 30s, bank buying 30s. Tax reform
uncertainty, anxiety over debt ceiling (12/08) likely adding to bid.
- Swaps, spds steady to mildly tighter in the wings at the moment. Sources
reported front end flattener trades earlier. Decent receiving in 5s, 8s and 9s
last few minutes.
- Eurodollar futures, higher, long end outperforming; heavy buying Whites-Reds,
EDH8 leads w/>190k. 

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