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Rates trade firmer, at/near top end....>

US TSY FLOWS
US TSY FLOWS: Rates trade firmer, at/near top end of range on moderate volume,
curves mildly flatter at moment; equities bumping around recent highs (SPX +5.0,
2643.25 vs. 2645.5H); US$ index coming off late overnight highs (DXY +.273,
96.396) while US$/Yen drifts near highs (+.15, 109.75).
- Tsys following EGBs lead after weaker European PMIs. Otherwise, generally
quiet as mkts await ECB rate annc shortly.
- Data on tap for Thursday: picks up with weekly claims (210k), Markit Mfg and
Services index (flash), Leading indicators, Kansas City Fed Mfg Index. Senate
votes re: competing funding bills looking to end US Gov shutdown (neither
expected to pass).
- Overnight flow included early selling in 5s, better buying in 2s and 10s
during early London hours, prep and real$ buying 10s and 30s more recently.
Sap-tied selling in the intermediates.
- Tsy cash/ylds: 2Y 99-27.5 (2.573%), 5Y 100-09.5 (2.559%), 10Y 103-13 (2.725%),
30Y 106-15.5 (3.041%).

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