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*** Treasuries drew more morning.......>

US TSY FLOWS
US TSY FLOWS: *** Treasuries drew more morning selling, in particular FX-tied
selling in correlated trades (US$/Yen/Tsys) by black boxes, said several
traders. US 10Y yield hit a high yield of 2.365% at 9:24am ET and now is at
2.359%. "The dollar bounced vs. the yen, and German Bunds started to go down, so
you don't know what leads what," said one trader. "But I think it is led by the
dollar."
- Then most recently, German Bunds appeared to stabilize and improve off the
lows starting about 9:30am ET, and Tsys followed suit. Tsys 2/10Y yield curve is
near unchanged on the day after earlier mild chop while 5/30Y is about 0.40 bps
flatter on the day.
- High grade CDX index and high-yield CDX index both improved on the day.

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