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### POV, FED PEDAL OFF THE METAL -..........>

US TSYS
US TSYS: ### POV, FED PEDAL OFF THE METAL
- Getting away from all the political headline risk (global trade, US Gove
shutdown, Brexit), short end rates have been moving off multi-year flats ever
since the Dec FOMC minutes and multiple Fed speakers express patience in further
tightening. 
- Have we seen the last hike for a while? Fed heeding global manufacturing
signals? If so, expect to see gathering flood of flattener unwinds and/or
outright steepeners taking a shot.
- Tsy yld curves -- not just another dead-cat bounce. Though still off Jan 3
steeps', curves have been grinding steeper since last week. Today's trade seeing
multiple/varied steepener activity: large 2s/5s duration weighted steepener
block (+16,750 TUH/-14,750 FVH) earlier, latest +10,000 Eurodollar White packs
(EDH9-EDZ9) Block could be vs. -10,000 TYH Block. Conditional curve steepener
trade via options have been trading more frequently.

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