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Treasuries declined Tues tracking...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries declined Tues tracking UK Gilts lower (10Y Gilt yld
+whopping 9.9bp on day), German Bunds too. That on EGB supply, plus as ECB
Coeure in Dec30 Caixin interview cited "reasonable chance that bond buying would
not be extended." 
- Tsys began NY weaker, steeper after overnight UK action (Tokyo closed until
Thu.) The market then saw mild dip buying. Then Tsys drew more sales on firmer
55.1 US Markit Dec manfctrng PMI, corporate rate-lock hedges as US high-grade
bond issuance revived. 
- Tsy futures: 10:43am ET sell-thru block of 3,521 UXH (Mar 10Y Ultra), sell
through at 133-01; followed Fri block buy +3,500 Mar 10Y Ultras at 133-18.5. 
- Fast$, prop acct sales in US Tsy 5Y and 10Y; program sellers joined real$
sellers in 10Y, 30Y; 5/30Y steepeners/flattener unwinds. Fast$ bought lows in
2s, 5s; rate receivers in mix as swap spreads ground in tighter. 
- Late morning sales in 10Y Tsy futures TYH from 123-23 to 123-20.5. Ultra Bond
futures slid: off 2-10/32. TIPS underperform. 
- US Eurodlr futrs: sale before 12:40pm ET: 14,000 EDM, 98.045.

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