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Plenty To Talk About On Taper


Needle Still Points South


Oil Holds Close to Highs, Recovery Secured

*** 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.
MNI Chicago Bureau | +1 312-431-0089 |