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Treasuries end Mon lower in.........>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries end Mon lower in risk-on mood, firm US stocks,
tighter Portugese sovereign debt sprds. Tsys mixed flows, reversal of some
pre-wknd safe-haven bid flow. Traders say volume is half normal; Jpn out Mon. 
- Tsys hurt by weaker German Bunds, FX-tied selling. Fast$ 2way flows, real$
better buyers, macro fnds quiet (await FOMC Wed). Rate-lock hedging vs
high-grade corp bonds; issuance sped up in front-loaded early wk before Wed
FOMC, Thurs/Fri Jewish religious Rosh Hoshanah holidays. Jitters on Wed FOMC Fed
bal .sheet reductn news, potential Dec rate hike views. Eurodlr futures lower
across strip. 
- US TSY FUTRS: Block buy 10:30am ET of 8,500 FVZ 5Y futures at 117-31, buy thru
117-305 offer at time. German Bunds hurt by 12,276 RXZ7 block trade, seemed
sale, in UK afternoon. 
- US rate hike % remain at/near 0% for next 2 FOMC mtgs but because of strong
short end sales  (new lead qrtrly Dec'17 Eurdlr futs), low delta put buys rose,
supports implieds, curve bear steepens. TSYS 3PM ET: 2Y 1.393%, 3Y 1.536%, 5Y
1.824%, 7Y 2.058%, 10Y 2.229%, 30Y 2.803%

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