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Rate bid after dovish side of.......>

US TSYS SUMMARY
US TSYS SUMMARY: Rate bid after dovish side of balanced minutes faded quickly,
focus turns to Fed Chair Powell at Jackson Hole eco-symposium Friday morning
(1000ET) while some headlines from sidelines may create some vol at symposium
mixer Thu night. Rates had pared gains earlier, knock-on response to Bbg
headlines re: Germany plans to up bond/bill issuance in '19 by E10-185b.
-  US$ index pared post minute losses, DXY -.109 to 95.147; US$/Yen .25 to
110.56, US$/Euro +.0017, 1.1588; equities firm (emini +2.25, 2864.0); gold
weaker late (XAU -1.01, 1195.05); West Texas crude strong (WTI +2.05, 67.89). 
- Decent volume for midday (TYU>1.3M) partially due to gradual increase in
futures rolling from Sep to Dec. Two-way positioning, light deal-tied flow in
short end (BoA $1.75B 2NC1), decent option hedging ahead Fri's Sep expiry.
- Day started w/moderate risk-off tone as market continues to digest late Tue US
political headlines, implications for Pres Trump (Pres Trump ex-lawyer Cohen
guilty plea, Manafort conviction), market pensive but taking it in stride
(becoming inured to noise out of Washington?). Tsy cash/ylds: 2Y 100-01.5
(2.595%), 5Y 100-06.25 (2.706%), 10Y 100-14 (2.823%), 30Y 100-08 (2.987%).

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