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*** Catching up with earlier flows.....>

US TSY FLOWS
US TSY FLOWS: *** Catching up with earlier flows as rates gradually rebound in
late morning trade, volume thinning out. Real$ active in cash steepeners
immediately after the bell, leveraged$ unwound/stopped out on 5s30s flatteners
on second leg lower by midmorning. Deal-tied hedging in the mix but not enough
to influence moves much given breadth of spec, real$, bank (domestic/foreign and
central), swap-tied in long end, technical and FX-tied selling that helped push
10YY to 3.0668% (+.0533, 3.0557% last). Heavy futures volume, TYM over 1.45M
already! The pre-open surge in US$ helped trigger sell-off, stops triggered as
US$/Yen sliced through 200-DMA of 110-18 earlier with the spd climbing to 110-38
high 30 minutes ago. Not surprisingly, gold hammered on the move (XAU -20.00,
1293.50), good entry in event of risk-off/safe haven move on mid-East concerns
(US sanctioning Iran central bank now). FI implied vol has receded off earlier
highs while CBOT VIX index holding near highs (+1.26, 14.19 vs. 14.33H), VIX
option volume rather anemic so far, May 13.5 put leads w/52.1k, 0.25 last.

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