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Quiet risk-off return from extended....>

US TSY FLOWS
US TSY FLOWS: Quiet risk-off return from extended holiday weekend, Tsy surged to
new session highs early in second half after FT headline: U.S. TURNS DOWN CHINA
OFFER OF PREPARATORY TRADE TALKS. Equities hit the skids (SPX -52.5, 2619.0)
erasing Fri's gains. Equities bounced on WH advisor headline: KUDLOW SAYS REPORT
THAT WHITE HOUSE CANCELED CHINA MTG NOT TRUE, bbg
- No react to limited data: Dec existing home sales -6.4% to 4.99 mln saar
(-10.3% y/y), well below expectations for 5.21 mln and the lowest since Nov 2015
(4.78m); upward revised 5.33m pace in Nov, however.
- Better buying across the curve, sporadic selling into strength, deal-tied
flow, mixed option flow.
- On tap for Wednesday: Redbook retail sales m/m, Nov FHFA Home Price Index and
Richmond Fed Manufacturing Index for January.
- Tsy cash/ylds: 2Y 99-26.75 (2.585%), 5Y 100-06.5 (2.577%), 10Y 103-08
(2.741%), 30Y 106-01 (3.063%).

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