Rates held weaker levels all day,......>

US TSY FLOWS: Rates held weaker levels all day, Tsy futures off lows by the

close after extending lows following flurry of positive data (Oct Durables

+0.6%, Highest Since Jul; weekly claims -15k to 213k; 3Q GDP Revised Up To

+2.1%). Rates gradually see-sawed off lows to near middle session range from

late morning through the close.

- Tsys did trade heavy again late as S&P E-Mini Futures continued to extend

all-time highs (3153.25).

- Pre-holiday market illiquidity rules in effect. Don't be fooled by the heavy

volume at the moment: TYZ>1.1m. Take away roll-related flow and trade in lead

quarterly is an anemic of 635k in late trade. Mar futures take lead quarterly

position Friday.

- Ultra-bond sell-through contributed to long end weakness: -3,000 WNH 188-06,

sell through 188-13 post-time bid.

- The 2-Yr yield is up 4.2bps at 1.6239%, 5-Yr is up 2.7bps at 1.6226%, 10-Yr is

up 2.2bps at 1.7637%, and 30-Yr is up 1.2bps at 2.1908%.