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Long end Tsy bid has evaporated,.....>

US TSY FUTURES
US TSY FUTURES: Long end Tsy bid has evaporated, session lows as incoming supply
from Bayer 8-tranche spurring spec acct sales before size of issuance annc'd.
Equities have trimmed steeper losses, adding to reversal in rates. Less certain
signal, US$/Yen is see-sawing off lows 110.47 last. Bit of a dead-cat bounce for
curves moving off lows at moment but likely to resume longer term flattening
w/inversion a real possibility in near term; update:
* 2s10s -0.465, 36.666 (35.503L/37.174H);
* 2s30s +0.115, 49.851 (48.245L/50.186H);
* 5s30s +1.120, 25.940 (24.341L/26.017H);
Current futures levels:
* Sep Ultra bonds down 8/32 at 157-16 (157-15L/158-10H)
* Sep 30-yr Bond futures down 3/32 at 143-18 (143-17L/144-03H)
* Sep 10-yr futures up .5/32 at 119-19.5 (119-18.5L/119-25H)
* Sep 5-yr futures up .75/32 at 113-08.5 (113-07.75L/113-11.25H)
* Sep 2-yr futures up .25/32 at 105-26.5 (105-26.25L/105-27.75H)

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