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*** Choppy day for Tsys after a.....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Choppy day for Tsys after a slow/low volume start, well off
steep first half lows in reaction to sell-off in Bunds. Drop in US$ vs. Yen
(113.151) and sharp sell-off in global equities sporadically lent to second half
rebound in rates. Little react to weekly claims (239k)  
* After Nikkei reversed new 25yr highs overnight, finishing -0.20%, global
equities sold off recent highs, eminis -2563.25 low. Gold (XAU +5.10, 1286.46)
and oil higher (WTI +0.41, 57.22) amid ongoing Saudi power-play/anti-corruption
move. Tsys exhibited strong correlation to Bunds in first half, reversing late
overnight highs, Gilts in tow.
* Flow included two-way in short end from fast$, prop accts, curve steepeners,
deal-tied hedging and pre-auction hedging ahead final leg Tsy supply ($15B 30Y
that stopped through to a 2.801% rate and strong 61.8% indirects. Eurodollar
futures Block buy 6k White packs (EDZ7-EDU8). 
* Large Tsy steepener Block (+17.6k TYZ vs. 4.7k WNZ); +12k TYZ 125-07 Block
into Tsy bounce off lows. Tsy futures Dec/Mar roll action still muted.
* Senate tax bill framework would delay 20% corporate tax rate to Jan. 1, 2019.

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