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T-Notes opened Asia up and met.........>

US TSY/RECAP
US TSY/RECAP: T-Notes opened Asia up and met overnight highs as sources reported
6.5k TYZ7 bought at 125-14+ and TYZ7 126/126.5 call spread paper pays '06 for 3k
-ref 125-14+, 14d. TYZ7 last at 125-13 and the 10-Year yield last at 2.313%.
- Treasuries ended Tuesday's overnight session mixed, flatter as the 2/10-year
Tsy curve visited the flattest levels since Nov. 2007 (+67.435 bps); also
outright flatteners done in 2s, 5s vs. 10s, 30S. - Stocks pressured as bank
shares reacted negatively to flatter yield curve, but off lows. House tax reform
bill has tentative vote Thu, but some feel it may not pass. Markets eyed
geopolitical tension between US/N. Korea with US Pres. Trump in region on Asian
tour thru Nov.14; leaderless Catalonia vs. Spain rule; and Brexit/EU negotiation
tug-of-war. But EGB peripheral bond spreads in Portugal, Italy, Spain and Greek
10Y spread to Germany all narrowing. - Tsys futures near higher end of range
after mixed $24B 3Y note auction (53.5% indirects, 1.750% rate, 2.76 bid/cover).
Tsys had two-way front end action earlier, real$ sold 5Y, fast$ unwound 5/30Y
flatteners, technical sellers in cash as 10Y neared 200-day movg avg. Heavy
corporate bond issuance too.

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