Traders noted Tsys sliding amid more...>

US TSY FLOWS: Traders noted Tsys sliding amid more FX-tied sales as the US

dollar is bid. vs. yen amid firmer 1.4% September factory orders. "Everything is

adding up to a solid US expansion," said one trader at a primary dealer. "And

this will be made stronger by this potential tax reform" and lower corporate tax

rate, he added. "The numbers are just very positive: it's just piling up on

itself."

- So "at some point, US rates have to go higher," he added. "Maybe we're at the

point that we can't hold US rates lower. Also there were dollar shorts out there

who might have been squeezed," hence the dollar pop recently vs the Japanese

yen, he said.