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Treasuries end Tuesday lower,..........>

US TSY/RECAP
US TSY/RECAP: Treasuries end Tuesday lower, tracking UK Gilts & German Bunds
down; 10Y Gilt yield up +9.9bp. Came amid EGB supply and as ECB Coeure cited
"reasonable chance that bond buying would not be extended." Curve bear
steepened.
- Tsys began NY weaker, steeper after UK action (Tokyo out until Thu.) The
market then saw mild dip buying. Then Tsys drew more sales after firm 55.1 US
Markit Dec manfctrng PMI. Mkt digested corporate rate-lock hedges amid
high-grade bond issuance. 
- UST futures: 10:43am ET sell-thru block of 3,521 UXH (Mar 10Y Ultra) at
133-01; followed last Friday's block buy of 3,500 Mar 10Y Ultras at 133-18.5.
Tsys had fast$, prop acct sales in 5Y and 10Y, and program sellers joined real$
sellers in 10Y, 30Y; 5/30Y steepeners done & flattener unwinds. Fast$ bought the
lows in 2s and 54s, while rate receivers in the mix as swap spreads ground in
tighter. Late morning selling in TYH 10Y Tsy futrs from 123-23 to 123-20.5. US
Eurodlr futrs sale before 12:40pm ET: 14K EDM at 98.045.
- T-Notes up 0.5 ticks at 123.22+ in Asia, cash UST's closed until London open.

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