FTN Financial's Jim Vogel said Tuesday......>

US TSYS: FTN Financial's Jim Vogel said Tuesday "month-end flows were content to

leave 10s under 2.40% and 30s under 2.90%. Both stay beneath those levels this

morning. The middle of the intermediate curve was under pressure into November,

however, to repeat as the worst performing sector on the curve for a consecutive

month. It does appear some of last Friday's rally accommodated early month-end

buying before the weekend."

- He noted October "saw Treasuries sag just slightly and the rest of fixed

income produce net profits." Meanwhile today "global rates are quiet, leaving

the US as the only major market where investors remain skeptical about continued

purchases in fixed income," he said. "Versus yields that were cheap to any

number of possible developments last week, Treasuries offer slightly less value

unless developments tip away from tax reform and inflation." 

- He adds "and of course, portfolio managers will have much more information to

assess value once Friday morning" and October US jobs "wraps up a busy week.

"Tomorrow, the Bank of England is expected to raise rates to reverse post-Brexit

easing" with traders also looking for "further clues to 2018 policy," he said.