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*** Heading into midday, futures....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Heading into midday, futures have quietly drifted to top
end intra-day range heading into $20B 10Y note re-open, 20bps cheap to last
months 2.384% stop through. Sources suspect strong interest up against channel
support of 2.590%.
- Much of days heavy volume a result of late overnight/early NY trade. Curves
off early steeper levels amid some profit taking on tactical steepeners set
earlier in week. Latest curve update: 2s10s +2.157, 60.235 (62.336H/57.381L);
2s30s +2.232, 94.526 (97.359H/92.140L); 5s30s +1.294, 57.574 (59.513H/55.775L).
- Little react to Chicago Fed Evans, Dallas Fed Kaplan comments, Tsys holding to
lower/narrow channel after sharp sell-off during London hours on headline that
China may slow/halt Tsy buying. US$ slammed, equities knocked lower but
rebounded (emini -3.0, 2749.0), gold firmer/off highs (XAU +5.0, 1117.78), oil
stronger (WTI +0.35, 63.31).
- Flow includes real$ selling old 3Y to buy new, fast$ selling old 10Y to buy
new, prop/fast$ taking profits on 5s10s steepeners places earlier in week.

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