Finish mixed on light volume...........>

US TSY/RECAP: Finish mixed on light volume (TYH<640k). Long end support

evaporated around the London close, curves bear steepened for a change w/long

end extending overnight lows. Equities higher (emini +5.25, 2747.75), gold

firmer (XAU +0.30, 1319.66), mild bid in West Texas crude (WTI +0.35, 61.79). 

- Quiet start to the week, light volume w/Japan out for Coming of Age Day

holiday; early fast$ and deal-tied sellers in the intermediates reported. Tsy

Bid evaporated/coincided w/uninspiring 3M- and 6M-bill auctions (stopped through

at 1.430% and 1.575% respectively). Sporadic deal-tied sales and gradual risk-on

tone gained momentum as Eq's climbed, 2-way fx-tied flow. 

- Multiple Fed speakers scheduled this week, three in current session. Tsys

drifted off lows after Atl Fed pres Bostic saying market may NOT see as many as

3-4 hikes in 2018 while fiscal benefit of tax reform will modestly boost 2018

growth. Jan 30/31 rate hike chances remain near 0.0% while March chances holds

around 84%; consistent selling in short end keeping pressure on curve. Block

sales EDU8 1yr Eurodollar bundle. Swap spds mostly tighter on supply.

- T-Notes open Asia at 123.15, 10-Year yield last 2.48%