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The UST 10Y reached its lowest......>

US TSYS SUMMARY
US TSYS SUMMARY: The UST 10Y reached its lowest yield since last November at
2.06% yesterday as concern surrounding Korea intensified. This morning has been
devoid of fresh news regarding North Korea and the Tsy rally has faded. The S&P
mini futures index has risen 0.1%, the yen has stopped appreciating and gold is
off its highs.
- It is a modest retracement on Wednesday, with the 10Y UST only 1bp above
yesterday's lows at 2.073% and other tenors are moving higher by less.
- Cat 5 hurricane, Irma has seen models change the path of the storm so it hits
Florida on Sunday while still a Cat 4 storm.
- There has been little movement in the bill market this morning as the market
approaches the debt ceiling issue. 
- With the Treasury rally on Tuesday, the 2-10Y UST spread reached its flattest
since 2008 at 77bp yesterday; both 2-5Y and 5-10Y spreads are pushing limits. By
contrast, the 10-30Y spread is close to its steepest since mid-June at 62bp. 
- Later today, the highlight will be the ISM non-manufacturing index at 1000
Eastern.

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