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Relative quiet at start of new week,...>

US TSY FLOWS
US TSY FLOWS: Relative quiet at start of new week, Fed in blackout ahead July
30-31 FOMC, light volume (TYU <210k), yld curves flatter amid carry-over
weakness in short end. Late Fri WSJ article quashed 50bp cut at next FOMC after
Fed officials "signal 25bp cut likely at Jul meeting" -- hammered the short end,
reversing Thu's post-Williams move. 
- Limited data to trade off of w/Chicago Fed National Activity Index and BOJ
Koruda speaking at IMF later this morning. Data picks up tomorrow w/ existing
home sales; US Tsy $40B 2Y note auction (9128287F1) kicks off wk's Tsy supply.
- Limited overnight flow includes prop selling short end, real$ buying across
curve, tactical steepener unwinds.
- The 2-Yr yield is up 0.4bps at 1.8227%, 5-Yr is down 0.2bps at 1.813%, 10-Yr
is down 1.1bps at 2.0447%, and 30-Yr is down 2.1bps at 2.5582%.

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