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Slo-mo bear steepening in Tsys --......>

US TSY FLOWS
US TSY FLOWS: Slo-mo bear steepening in Tsys -- impressive volumes on move -- at
a glance. But take away all the roll volume, and move supported by slightly
above avg volumes: TYH/TYM >855k at moment, TYH total volume 2M, so just over
1.1M early in second half.
- Rolling will most likely continue unabated ahead Feb 28 first notice date But
current trade evaporating after London close -- and ahead Fri's heead-line item.
Release of Fed's semiannual policy REPORT ahead of Chairman Powell's testimony
on Feb 26. That said .. DC colleagues don't think much will be drawn from the
report to Congress Fri, usually a dull recap of all FOMC has done last 6 mos.
- Corporate issuance and option-tied hedging adding to day's volume, reminder
March Tsy options expire Friday. On supply, swap spds tighter across the curve
as a result amid two-way flow, better receiving in front to intermediates.
- Note on swap spds, short end has narrowed back to 3-year lows, 2Y spd
currently -1.25 at 9.81.
- Tsy cash/ylds: 2Y 99-30 (2.529%), 5Y 99-29.75 (2.513%), 10Y 99-13 (2.691%),
30Y 99-03.5 (3.045%).

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