### POV, Continued flattening this...>

US TSY FUTURES: ### POV, Continued flattening this morning, 10-plus year lows in

the 2s10s (58.739bp low, 58.858 last, -2.337), as well as the 5s30s (65.536 low,

66.215 last, -2.439). Either related to macroeconomic uncertainty or lack of

confidence in the maintaining the trajectory of gradually improving inflation

figures in the face of more rates hikes by the Federal Reserve.

At this pace, the 2s10s curve will invert sometime in January 2018, Bank of

America said, after flattening some 20bps this month, most since February 2016.

An "inverted yield curve has been the prelude to recession in seven out of seven

occasions in the last 50 years," BoA warns. But "liquidity is still ample, and

hopes for a solid year of growth in 2018 are growing," one market expert opines,

while equities hover near all-time highs. Markets are coiling in the short end,

under pressure as LIBOR rates are gapping higher amid year end-funding concerns

while the debt limit deadline on December 8 still has to be addressed. Something

has to give here.