Risk-on tone following tax bill........>

US TSY FLOWS: Risk-on tone following tax bill passage early Saturday, Tsy

futures trading weaker, more than making up for the dregs of Fri's curve

flattening rally. Decent volume (TYH>500k), 10Y yld +.0339 at 2.3955%, 2s10s

curve +.798 at 59.147; 30Y yld +.0294 at 2.7909%. Equities stronger (emini

+16.25, 2660.25), gold weaker (XAU -7.24, 1273.26), oil weaker (WTI -0.64,

57.72). 

- Asia, Tsys opened weaker, gapped lower on tax bill pass. Moderate 2-way trade

helped keep Tsys to narrow range near Fri's lows into London crossover.

- London, more two-way, choppy action with Tsys off low end of range, some accts

fading bear steepening, fast$/props doing flatteners in 2s10s.

- Swaps, spds running steady to marginally mixed, 5yr running tighter. Sources

reported mixed flow and receivers in 2s and 10s.

- Overnight repo, old 2s and 5s remain tight

- Eurodollar futures, weaker across the strip, near upper end of range, better

selling in Whites-Reds (EDZ7-EDU9); LIBOR resumes climb into year-end, 3M

+0.0139 to 1.5085% (+0.0270 last wk), 6M +0.0189 to 1.6931% (+0.0203 last wk).