The US dollar funding tightness......>

US TSYS/STOCKS: The US dollar funding tightness stems from "many things" such as

"Chinese yields gong up," plus the "year-end in itself" and also the fact that

"there is not that much Treasury collateral" available, plus the yield curve

flattening movement, said traders. 

- But if Wed 8:30am ET US Oct. CPI "comes in weak, that could change things, and

may improve liquidity," said one observer. 

- But another trader said that the firm Oct. 0.4% PPI number "has put the Fed

back in play again" as market players bet on a tightening Fed. 'They are trying

to disregard" the higher PPI "as being a hurricane effect," he added. "But it is

flattening out the Treasuries curve. So people have an indecisive mood, and that

is knocking down the stocks."