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*Correct* (removes CPI, was............>

US TSY/RECAP
US TSY/RECAP: *Correct* (removes CPI, was incorrectly in a 3rd party calendar)
Tsys traded mixed by the bell, with the curve running mildly flatter. T-Notes
closed at/near session lows, with little in the way of a flight to quality
apparent in spite of tech sector worries & lower oil prices. Overall futures
volume padded by an increase in roll volume. Otherwise, relative
quiet/range-bound trade ahead of the Thanksgiving holiday
- 2-way flow noted with better front end selling & some mild deal-tied hedging.
Large upside low-delta call buying in early '19 TY, hedging potential for no Dec
rate hike &/or IOER tweaks. Block sales -20k TUZ unwinds small portion of better
buys over last 2 weeks. Late Block off-duration weighted fly, wings bought over
22,245 TUZ 105-16.2, 39,372 FVZ 112-28.5, 7,817 TYZ 126-06.
- U.S. Pres. Trump stated that he would like lower interest rat... already
known, while Fed dove Kashkari stuck to script, suggesting that the Fed should
pause to assess the impact of the hiking cycle.
- Durable goods data headline Weds, as well as a 10-Year TIPS auction.
- T-Notes last 119.08, U.S. 10-Year cash Tsy yields closed at 3.063%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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