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The FI pendulum swings other way.......>

US TSY FLOWS
US TSY FLOWS: The FI pendulum swings other way Wednesday, sell-off initially
triggered early overnight on positive sounding "noise" re: phase 1 US/China
trade deal progress again. Sharp chop post ISM non-mfg: headline miss triggered
brief up-gap, then further weakness as mkt focused on decent improvement in
employment (55.5 NOV VS 53.7 OCT) and new orders (57.1 NOV VS 55.6 OCT)
components. Tsy futures holding rather narrow range/near lows since midday after
ratcheting off higher levels in early London trade. Yld curves rebound from
Tues' bull flattening.
- Swap spds running mixed by the bell, spd curve flatter all session vs. rebound
in Tsy yld curves. Modest flow included better payers in 2s and 5s, deal-tied
selling in the mix. 
- While correlation between ADP and NFP is limited at best, today's weaker than
exp ADP data (+67k vs. +140k est) has yet to spur any changes to dealer ests'
for Fri's Nov NFP (+128k prior vs. +190k est).
- The 2-Yr yield is up 4.4bps at 1.5822%, 5-Yr is up 6.1bps at 1.6031%, 10-Yr is
up 6.2bps at 1.7775%, and 30-Yr is up 6.3bps at 2.2264%.

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