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Treasuries ended Mon mainly............>

US TSY/RECAP
US TSY/RECAP: Treasuries ended Mon mainly weaker/flatter after drifting from
overnight highs, then ebbed more in early NY action, then tight range since
mid-session in the US. Tsys began NY higher, choppy early NY as markets digested
shifting German politics, tough for German leader Merkel to get coalition govt.
German Pres: wants various parties to try coalition again. Tsys black-box sales
as $ rose vs JPY. First selling wave started early in the US, another
midmorning. 
- Traders nervous on 2018 rate hikes. GS expects 4 hikes; a head trader at
another firm said Fed dots now price 3 hikes for 2018, while Tsy priced in 1-2.
Some exit Tsys amid bes on tax reform, which cd aid US stks. House, Senate out. 
- Tsy futrs had 9:31am ET block:5,000 TYZ at 124-26.5, crossed on offer. Cash
5/30Y, 2/10Y Tsys flatteners. Dec/Mar Tsys futrs roll picks up in earnest: heavy
volume. Dec Tsy options expire Fri. - US SWAPS: Mostly wider, curve steeper, 10Y
taps disinversion; 30Y spd closes in on -20: 2yr+ high.
- T-Notes up 1 tick in Asia at 124.23, 10-Year yield last 2.367%.

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