T-Notes went out at/near worst.........>

US TSY/RECAP: T-Notes went out at/near worst levels, on Tuesday, grinding to

fresh session lows late in the day ahead of the results from the Midterm

elections. Have ticked higher after the re-open.

- Otherwise, early two-way flow turned better selling by prop, fast- and

real-money a/c's in 5s-10s.

- Midterm election risk-event buoyed implied vol in at-the-money 5- and 10-Year

options, which read higher on the day. Better put volume on net, with calls more

two-way.

- Tsy futures flattener block noted: -11,398 FVZ 112-05 vs. +2,103 WNZ 148-19;

Large TYZ 117.5 put roll to TYF Block ahead quarterly expiry in couple weeks.

- Focus is well and truly on the Midterms, ahead of the Fed MonPol decision, due

Thursday.

- T-Notes last 117.31+, U.S. 10-Year cash Tsy yields closed at 3.228%.