Nothing concrete, but market took......>

US TSY FLOWS: Nothing concrete, but market took potential for US/China trade

deal (via telephone game) as risk-on. Tsys sold off half a point in 30Y,

equities rallied (HANG SENG +1,070.35 +4.21% -- still -2.36% for month,

-7.54%/yr). 

- Rates chopped off lows in late Asia through London hours, flow two-way in

short to intermediates w/continued better selling in 5s and 10s from various

accts.

- Next up: Oct NFP (+190k est), unemployment rate (3.7%), average hourly

earnings (0.2%). Don't expect much on a +/-20k on jobs report, however. Focus

still more on trade and of course next week's Midterm election on Tuesday, FOMC

policy annc Thu.

- Mild front end Eurodlr buy even after 3M LIBOR set +0.0108 to 2.5923%

(+0.0720/wk) -- highest set in nearly 10 years to the date. Appr +20k from

97.235 to .24 (+0.000) post set', trades back to mildly lower. FRA/OIS receded

slightly (+.45, 37.10). Tsy cash/ylds: 2Y 100-00 (2.871%), 5Y 99-14.25 (2.994%),

10Y 97-19 (3.161%), 30Y 92-22 (3.391%).