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Treasuries continue to grind........>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries continue to grind lower early Tuesday, with
non-manufacturing PMI set to feature later.
- The Mar 19 T-Note future is down 2/32 at 121-21, having traded in a range of
121-195 to 121-255.
- Curve a little steeper. The 2-Yr yield is up 0.2bps at 2.5385%, 5-Yr up 0.5bps
at 2.5402%, 10-Yr up 0.5bps at 2.7288%, and 30-Yr up 1bps at 3.0645%.
- Fairly little reaction to Fed news overnight, including comments from an
increasingly dovish/moderate Mester of the Cleveland Fed (non-2019 voter), and
Fed's Powell & Clarida meeting with with Pres Trump & Treas Sec Mnuchin.
- No Fedspeak scheduled for today, though Trump`s State of the Union address is
tonight.
- Notable flow overnight limited but has included 50k TYJ9 122.50/124.50 call
spread for '19 (ref TYM9 121`29/295).
- Non-manufacturing ISM reading (0945ET) is Tuesday's key data reading; is
expected to fall to 56.4 in January from a revised 58.0 reading in December.

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