*** Holding a narrow range off......>

US TSYS SUMMARY: *** Holding a narrow range off session lows after the $12B 30Y

auction reopen, mild tail at 2.790%, the third tail this week. Equities near

steady (emini -1.25, 2493.0), gold weaker (-8.02, 1323.78), oil stronger (WTI

+0.81, 49.04).

- Tsys opened near steady/mildly higher, scaling back small rebound from risk-on

selling in first half of wk, relative quiet in early trade, limited react to PPI

+0.2% final, while Fed remains in black-out period ahead next wk's FOMC.

- Tsy reversed gains/ slipped to new modest session lows as USD rebounds from

mild/carry over weakness from overnight. Flow included fast- and real$ sellers

adding to deal-tied hedging

pressure in intermediates to long end. Mild rate paying in 2s-10s pushing spds

little wider. 

- Rate hike probability remains at 0.0% for next 2 meetings, chance of hike at

Dec 13 FOMC back to mid 30s after falling below 19% last week.

- Option tied selling in Eurodollars ahead Friday's Sep quarterly futures and

options expiry.