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*** Rates holding mostly higher.....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Rates holding mostly higher after midday/off highs on
decent volume (TYH>1.4M), curves flatter/off lows, Tsys pared gains, after $7B
30Y TIPS auction, 2bps tail, awarded 1.003% rate vs. 0.995% bid. 
- Certainly the quietest day of the wk despite large flurry of data, not a good
sign for an active Fri w/traders eyeing exits heading ahead extended holiday
weekend, Chinese New Year holiday's to temper next wk's volume
- Prior to auction, Tsys receded off higher as US$ bounced vs. Yen on back of
Nikkei headlines "Japan Is Said to Consider Wakatabe for Senior BOJ Post:
Nikkei" Wakatabe has advocated for bolder monetary easing, USD/YEN 106.80 from
around 106.25.
- Wkly claims +7k to 230K vs. 280k est, PPI +.4%, inflation exp tempered by Jan
IP dip to -.1% vs. +.2% est.
- Flow included fast$ buyers in 10s, bank buying 30s post IP, fast- and real$
sellers in 10s near highs, mixed curve flow included 2s10s steepeners fading
move, 5s10s flatteners. Heavy option volume hedging quarterly rate hikes w/front
end well offered.

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