/MIDEAST: EXCLUSIVE: Traders cited "broad...>

US TSYS: /MIDEAST: EXCLUSIVE: Traders cited "broad selling" in Tsys by varied US

account types in some cases, while others eyed Mideast/other foreign sellers

perhaps as tensions rise in Saudi Arabia, Lebanon and in Iran. Some mull theory

-- talk only -- that the US$-denominated-asset selling (which some see across

varied asset classes) could be tied to fear of Mideast/Iran tension. "If they go

to war with Iran, they need to raise money," said one observer, speculating on

what's driving bond/other US$ asset liquidation. 

- Some noted bond liquidation started with EGBs Wed-Thu; was talk Thursday

midday of Mideast and Asia sales in EGBs; that occurred right around time that

Tsys slid sharply for no apparent reason. There was again talk today of more EGB

liquidation, which also  pressured Tsys. 

- "It does seem like there is a flow out of US$ dollar debt products," said one

trader at a primary dealer. "It's seems like a de-risking across dollar assets;

people may be thinking about the yearend." 

- One harried trader joked of Treasuries, "We need buyers. Where are the

buyers?"