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Early, tentative risk-on trade trade...>

US TSY FLOWS
US TSY FLOWS: Early, tentative risk-on trade trade gave way to risk-parity like
support for equities as well as Tsys, latter off lows on modest volume even as
stocks surged. 
Equities gained as financials outperformed: Blackrock, MS and GS all beat
earnings est); midday support in Tsys receded briefly as equities continued to
power higher: SPX +55.0 at 2804.0, just another 85.0 to go to get back to last
Wednesday's pre-meltdown level (and appr 75.0 off last Thursday's late lows).
- Curves extend flattening with long end outperforming. FI implied vol grinding
lower on the range (better call sales, put buys on net); VIX in retreat as well
-2.96, 18.34 vs. 20.56H. 
- Trade volume fairly muted, however, modest data today -- accts likely
sidelined ahead Wed' Sep FOMC minutes release in afternoon. Also waiting on Tsy
dept release of FX policy report on major trade partners w/US. Decent deal-tied
flow on dat, rate paying intermediates to long end.
- Tsy cash/ylds: 2Y 99-24.75 (2.866%), 5Y 99-09.75 (3.025%), 10Y 97-16.5
(3.169%), 30Y 93-14.5 (3.347%).

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