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Needless to say -- but expect whippy...>

US TSY FLOWS
US TSY FLOWS: Needless to say -- but expect whippy price action on shortened
session today. Equities gaining a few ticks on air (SPX+25.5 at 2511.5). Markets
close early for New Years eve. 
- Data includes Dallas Fed manufacturing index for December; Tsy auctions: $39B
13W (912796RD3), $36B 26W bills (912796RW1) and $26B 52W bills (912796RT8).
- Some accts catching up w/positive sounding headlines on US/China trade (WSJ
article over weekend -- "fleshing out" deal) and Italy budget acceptance.
- FI Volumes very light (Japan out most of week for various year-end holidays),
TYH just over 110k at moment; long end catching bid, curves reverse recent
steepening. Note, US$ vs. Yen slips to new 6M low, 109.88 last seen mid-June.
- Light, two-way flow, program selling in short end post LIBOR set, year-end
buying intermediates.
- Tsy cash/ylds: 2Y 99-30 (2.526%), 5Y 100-09 (2.563%), 10Y 103-12 (2.730%), 30Y
106-25 (3.027%)

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