/STOCKS: Treasuries sliding lower, once.....>

US TSYS: /STOCKS: Treasuries sliding lower, once again with the correlated

trade, as US$ rises vs. yen, spurring black-box tied selling in Tsys; US 10Y

yield is at 2.365% vs. session high yield of 2.370% hit at 11:42am ET; US$/Yen

hit a session high of Y112.55 before fading, now is at Y112.4630. "It is the

dollar, and everything is following that," said one trader at a primary dealer.

"And a lot of people are still long Treasuries and getting nervous: people are

talking about the Goldman Sachs' call for four rate hikes in 2018.

- "So it's position getting wound down," he added. "Plus we have 2/5/7Y auction

supply next week. The market is starting to price in nearly 100% odds of a

December rate hike. So the only thing holding the economy back is the tax reform

nervousness. We don't know."

- But if such tax reform passage in Congress "does not happen, that takes steam

out of the growth rate expectations for next year," he added. "But there may be

some expectations that the tax reform package does get done, and the Treasuries

market is long," thus that would argue for firmer stocks/cheaper Tsys, so some

accounts may already be moving in that direction, he said.