*** Hectic end to the week -- and...>

US TSYS SUMMARY: *** Hectic end to the week -- and not due to tax bill vote in

Senate. Tsys gapped higher late morning after headlines annc'd Michael Flynn

agreed to cooperate w/prosecutors in Russia investigation. Late AM Tax vote

moves to procedural vote appr 1400ET.

- Rates had opened higher w/Gilts, initial mkt focus on tax bill vote. Long end

Tsys gapped higher (10Y yld 2.3136% low; 30Y yld 2.7155% low) as word of Flynn's

cooperation made the rounds (had been ann'c earlier Flynn plead guilty of lying

to FBI re: Russian contacts).

- Massive risk-off flow ensued, equity slide w/emini falling to 2605.0L

(-45.0!), gold surged to 1289.88 high while US$ fell as markets ignored Senate

tax vote to digest flurry of headlines Flynn to testify against Trump admin 

- Heavy buying, stops triggered on way up, curve flatteners/steepener unwinds

large Block buying in 10s. Calm slow to return w/Block sales as Tsys trimmed

gains, very choppy trade on heavy volume (TYH>2.75M). Heavy Block sale -28.5k

FVH early, cash sales 2s and 3s, multiple flatteners. Tsys continued to scale

back gains early in second half as focus turned back to Tax vote.