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Modest risk-on scales back portion.....>

US TSY FLOWS
US TSY FLOWS: Modest risk-on scales back portion of Tue's move, Tsys at/near
late overnight lows, equities just off recent highs (SPX +14.0 at 2646.0 vs.
2647.75H). Yld curves mostly steeper (2s10s +0.976, 15.990; 5s30s -.404,
47.631). US$ index near lows (DXY -.090 at 96.213), while US$/Yen see-saws
around top end of range after weaker start (+.29, 109.66) BOJ policy unched.
- Another quiet data day -- on tap: Redbook retail sales m/m, Nov FHFA Home
Price Index and Richmond Fed Manufacturing Index for January. Continued headline
watching: US/China trade (equities bounced off lows late Tue after WH advisor
Kudlow headline "REJECTS FT REPORT ON U.S. TURNING DOWN CHINA PREP TALKS", Bbg
this morning: "China Deal Hinges on Enforcement, Structural Issues". Senate
votes on competing proposals to end partial shutdown Thursday.
- Rather decent 10Y futures volume (TYH>445k), consistent selling in
intermediates from fast$ and prop accts, real$ two-way out the curve. Ongoing
deal-tied sales.
- Tsy cash/ylds: 2Y 99-25.75 (2.602%), 5Y 100-03.25 (2.601%), 10Y 103-02.5
(2.762%), 30Y 105-22.5 (3.080%).

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