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Generally quiet start to the wk,....>

US TSYS SUMMARY
US TSYS SUMMARY: Generally quiet start to the wk, Tsys well bid w/risk-off tone
on trade war concerns w/China, muted volume w/China out on holiday. Data largely
limited to housing related items, BoE policy annc Thu.
- US$ bounced (DXY +.072, 94.860; US$/Yen -0.20, 110.45); equities off lows
(emini -9.75, 2774.75); gold weaker (XAU -1.20, 1278.35); West Texas crude
mildly higher (WTI +0.07, 65.13 vs. 63.59L).
- Long end Tsy bid evaporated, slipped to session lows mid-late morning as
incoming supply from Bayer 8-tranche (3Y-30Y) spurred spec acct sales before
size of issuance annc'd (Historical context, top 3 mega deals: $49B Verizon from
Sep 11, 2013; $46B AB InBev from Jan 13; March 6 $40B CVS 9-Part CVS).Equities
trimmed steeper losses (FANG shares kicked it off), adding to reversal in rates.
Less certain signal, US$/Yen is see-sawing off lows 110.47 last. Bit of a
dead-cat bounce for curves moving off lows at moment but likely to resume longer
term flattening w/inversion a real possibility in near term. 
Tsy cash/ylds: 2Y 99-28.75 (2.549%), 5Y 99-24.75 (2.797%), 10Y 99-17.5 (2.926%),
30Y 101-08 (3.060%)

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