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Carry-over weakness, Tsy futures.......>

US TSY FLOWS
US TSY FLOWS: Carry-over weakness, Tsy futures trading lower/off overnight lows,
curve adding to Wed's bear steepening on heavy volume (TYZ >525k), EGBs
following suit. US$ little firmer vs. Yen, equities weaker (emini -3.25,
2501.25), gold firmer (+1.80, 1284.60), oil firmer (WTI +0.48, 52.62).
- Asia, Tsys opened steady, developing slight bid on light position squaring.
Selling resumed after soft 2Y JGB auction, Asian banks sold 10Y, while others
liquidated some Tsys holdings, steady selling into London open. Decent buying
TYX 124.5 puts (38.9k w/18k Block from 14- to 19/64)
- London, another healthy volume session amid two-way flow on net, prop and
fast$ buying on lows, end-user accts selling 10s and doing flatteners in 5s and
10s vs. long end.
- Swaps, spds running mixed, spd curve mildly flatter, flow included real$ and
macro fund rate paying in 10Ys.
- Eurodollars, steady to weaker, short end outperforming on moderate volume. Dec
rate hike probability holding just above 70% at 70.9%.

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