Treasuries end choppy Wed...........>

US TSYS SUMMARY: Treasuries end choppy Wed higher/flatter after higher US open,

more buying, but midmorning peak after digested 0.1% Oct CPI/0.2% Core CPI. Tsys

saw a large post-CPI 2/10Y cash Tsys flattener and massive 23,826 block buy at

8:59am ET of TYZ 10Y Tsy futures at 125-03, equiv US$1.85M DVO1. 

- But Tsys reversed off high in choppy trade. Investors cited weak real wage

data, breaking multi-decade US Tsy 5/30Y support line. Another block occurred of

5,000 TYZ at 124-28 at 11:22am ET,cross on bid, and a sale of 4,000 EDH 1-yr

Eurodlr bunds (Red Mar'19 thru Green Dec'19). Mkt had 8:12am ET 8,000 buy of TYZ

at 125-01.5 buy through. 

- Tsys heavy volume, bull flattener, 2/10s curve hit 10+ year low, +63.882.

Yrend worry, risk off, tax reform/debt ceiling nerves fueled bid. Firm US$/yen

pressured Tsys. 

- US swap spds mixed; steeper; earlier front end fly, rate receiving, better

rate and spd paying in intermeds, long end by prop and fast$. Tsy 3/10/30Y

auctions settled. Traders eyed yrend $ fundg shortage. US, EU junk bonds weak.

TSYS 3PM: 2Y 1.687%; 3Y 1.801%; 5Y 2.038%; 7Y 2.218%; 10Y 2.336%; 30Y 2.782%