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*** Green light for risk-on into....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Green light for risk-on into weekend. Tsy futures sold off
on U.S. budget resolution passage overnight. Stronger global eq's and rising
chances of Dallas Fed Powell as next Fed chair (58%, up 19% after Pres Trump
meet w/Fed Chair Yellen late Thu) added to move, futures making new lows for wk.
- Gold resumes slide (-9.75, 1280.34), equities gaining (emini +9.75, 2570.25;
DJIA new all-time high 23296.01.)
- Flow included large sellers of old cash 30Y bonds, real- and fast$ both sold
cash long end Tsys, 5/30Y flattener unwinds; TIPS outperform nominal Tsys. Quiet
high-grade corporate bond issuance.
- Massive sale Eurodlr futures, -92k EDZ7 mostly at 98.495 and some -30k Mar18
from 98.355 to 98.35. Heavy option volume, some put sales/taking profits.
- Swap spds cinched tighter amid decent two-way flow, receivers in front end,
payers in intermediates, two-way curve and fly flow on light size.
- Reality check on Fed Yellen back at White House today, part of scheduled
meeting w/economic advisor Gary Cohn, not Pres Trump. Tsy futures blipped off
lows but receding again.

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