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Markets remain unsettled to say the....>

US TSY FLOWS
US TSY FLOWS: Markets remain unsettled to say the least following Wed's late
equity plunge, continuing and spilling over to global markets. At least the
risk-off bid in Tsys makes more sense than Wed's seemingly forced risk-parity
unwind. US$ weaker (DXY -.345, 95.163), Gold higher (XAU +8.68, 1203.51), West
Texas crude weaker again (WTI -1.31, 71.86). Note, VIX rally resumes, 23.80 last
(+.84) vs. 24.52H.
- Global trade angst adding to risk-off tone (not to mention Trump vs. Fed),
sovereign spds wider to Bunds, blackout on discretionary buybacks and stop-outs
weighing on equities, but some buying on lows noted, technical buying. Late leg
Tsy supply w/$15B 30Y auction, deal-tied flow w/chatter $3B total US$
denominated China finance 5Y, 10Y and 30Y (order book >$17B). Misc acct sellers
short end, buyers 5s, two-way out the curve. Note yld curves marginally mixed
- Eurodollar front end bid evaporated after 3M LIBOR gained +0.0111 to 2.4363%
(+0.0282/wk).
- Tsy cash/ylds: 2Y 99-25.5 (2.852%), 5Y 99-10.5 (3.020%), 10Y 97-13.5 (3.180%),
30Y 93-03.5 (3.367%).

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