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Quiet start to wk, Tsys reverse.....>

US TSYS SUMMARY: Quiet start to wk, Tsys reverse early risk-off bid on $15B
Bayer 8-part issuance. Early support on trade war concerns w/China, muted volume
w/China out on holiday. Data limited to housing items, BoE policy annc Thu.
- US$ off (DXY -.030, 94.758; US$/Yen -0.14, 110.51); equities off lows (emini
-10.25, 2774.25); gold near steady (XAU -0.06, 1279.48); West Texas crude firmer
(WTI +0.74, 65.80 vs. 63.59L).
- Long end Tsy bid evaporated, slipped to session lows mid-late morning as
incoming supply from Bayer 8-tranche (3Y-30Y) spurred spec acct sales before
$15B issuance annc'd (Historical context, top 3 mega deals: $49B Verizon from
Sep 11, 2013; $46B AB InBev from Jan 13; March 6 $40B CVS 9-Part CVS). Equities
trimmed steeper losses (FANG shares kicked it off), adding to reversal in rates.
Less certain signal, US$/Yen is see-sawing off lows 110.47 last. Bit of a
dead-cat bounce for curves moving off lows at moment but likely to resume longer
term flattening w/inversion a real possibility in near term. 
- Tsy cash/ylds: 2Y 99-28.5 (2.553%), 5Y 99-24.75 (2.799%), 10Y 99-17 (2.928%),
30Y 101-09.5 (3.058%)

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