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*** Much calmer finish after........>

US TSYS SUMMARY
US TSYS SUMMARY: *** Much calmer finish after carry-over chop/gap-trade
following late Mon's pandemonium when equities cratered/vol index gapped to new
highs. VIX at 29.35 (-7.97) in late trade vs. 50.30 high on open. Equities
rebound/broadly higher late (emini +85; DJIA +535,; NDX +148). 
- Limited react to data, StL Fed pres Bullard downplayed inflation pressure in
morning event. Weaker upsized $26B 3Y auction awarded a 2.280% rate (2.080%
previous) w/ bid/cover 3.0 vs. 3.13 previous. Decent corp/supra-sov issuance $7B
3Y, $1.35B 5Y) on day. 
- CME vol index VIX surged >50 first time since Aug 2015, aftermath of leveraged
short vol/inverse VIX ETF hedging. Real vol delivered: VIX fell to 22.42 low and
rebounded to >46.0 in 40 minute period, heavy option volume. 
- Tsys receded to near steady mid-morning amid ongoing chatter of risk
parity/CTA acct selling (unconfirmed). Sources reported real$ buying in
intermediates, carry-over fast$ selling short end near highs, two-way in 3s
ahead the $26B note auction. Heavy option volume
- Late ylds: 2Y 2.101%, 3Y 2.274%, 5Y 2.523%, 7Y 2.693%, 10Y 2.783%, 30Y 3.055%

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