### SHORT TERM OPPORTUNITY ARISING IN.......>

US TSYS: ### SHORT TERM OPPORTUNITY ARISING IN TSYS, TACTICAL CURVE PLAYS. 

- Strong rebound in Treasury curve (see latest levels below) comes amid light

pre-holiday volume, thin market depth as long end makes new late session lows --

move exacerbated position unwinds heading into the holidays. 

- Some market participants had suspected cessation in curve flattening after

last week's move to new 10+ year lows in 2s and 5s vs. 10s and 30s. While

volatile, current move sets tone for additional consolidation, steepening as

accounts square up positions heading into year end.

- Pull back to last week lows provides opportunity to enter tactical wideners or

consolidate flatteners as market unlikely to extend last week's 10+ year lows.

Accounts looking at short term range play as early 2018 may usher in renewed

curve flattening. Inversion a long way off, some dealers still expressing

caution, potential for. Current curve levels:

* 2s10s +4.570, 55.874 (56.053 session high)

* 2s30s +6.660, 91.400 (91.887 session high)

* 5s30s +4.629, 57.820 (58.512 session high)