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T-Notes begin the Asia session lower...>

US TSY/RECAP
US TSY/RECAP: T-Notes begin the Asia session lower after declining on the
overnight, last at 125.06, 10-Year yield last at 2.334%
- US Tsys ended Wed weaker after digesting a strong $23B 10Y auction (2.314%
rate, strong 68% indirects, good 9.04% directs) so only small 23% left for
dealers. Tsys traded quietly as we await more details on House and Senate US tax
plans; Senate panel to start hashing out plan with members 11:30am ET Thurs;
House tax writers still at work for 3rd day Wed tweaking tax plan. 
- Tsys opened mildly lower with long end off overnight lows, resisting rally in
Bunds and Gilts in afternoon UK; weaker US$ vs. Yen that typically supports
Tsys. Little/no react to 2nd tier data. Tsys lifted mildly off lows after 10Y
sale. 
- Morning muted Japanese selling in Tsy intermeds, quiet 2way flows from misc US
accts, mild 2/10Y, 2/30Y, 5/30Y steepeners. 2way corp deal-tied flow and auction
tied hedging/unwinds. Muted volume in Dec/Mar Tsy rolls. Also downside put
buying, rate hike insurance covering 1H 2018. 
- US SWAPS: Tighter after mixed open, curve extends Tues steepening.

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