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Treasuries crept up Thursday after.....>

US TSY/RECAP
US TSY/RECAP: Treasuries crept up Thursday after starting NY lower on reaction
to Trump tax plan/cut (more Tsy supply, fiscal stimulation? Higher stocks?) Fed
Chair Yellen recent Dec rate hike hint, other Fed officials agreeing caused
nerves. Tsys began lower after overnight technical sales as cash 10-yr note
yield broke over 2.326% 200-day moving average; other sales, TYX put buys. (10Y
yield closed BELOW 200-day av.) 
- Tsy pre-auction shorts, market calmer. Tsy futures had short-end buys: 11,200
TUZ 2Y futures at 107-28.75, and large 130K at 107.28.5. Heavy Dec'17 Eurodollar
futures buys aid front end; Dec rate hike backpedaled to 64.9% vs 71.3% Wed. 
- Superb Tsy 7Y auction: 70.6% indirects, 3rd best since 2009; stopped thru to a
2.130% rate, large 18.95% directs, only 10.4% for dealers, some chase mkt up,
missed auction; cover 2.7x. Tsys corp-tied hedges, FX-acct buys/short-covered on
weak US$; mild buying of 2Y, 3Y, 5Y cash, two-way flows, early mild FX-tied
sales. 
- Tsys open Asia at 125-16+, the U.S. Tsy yield last flat at 2.309.

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