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Trades firmer on moderate volume.......>

US TSY FLOWS
US TSY FLOWS: Trades firmer on moderate volume (TYZ just over 300k), near late
overnight high w/long end outperforming
(10YY -.0356, 1.5707%; 30YY -0.0397, 2.0477%), yld curves bull flattening, 3M10Y
reversing Mon's move -- back to early Fri levels.
- Another day of limited data (Aug Philadelphia Fed Nonmfg, Redbook retail
sales) Fed speak later in afternoon/early evening. Otherwise, more headline
watching. Mkt looking toward July FOMC minutes release Wednesday, start of
Jackson Hole eco-summit on Friday.
- Overnight flow included cross-current trade in bell, bank portfolio buying
long end earlier, pick-up in buying in 10s during London hours, light deal-tied
selling short end, rate paying in 2s and 30s.
- The 2-Yr yield is down 2.3bps at 1.5225%, 5-Yr is down 3.1bps at 1.4459%,
10-Yr is down 3.6bps at 1.5707%, and 30-Yr is down 4bps at 2.0477%.

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