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Treasuries open NY mildly weaker,...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries open NY mildly weaker, flatter after overnight range
trade in holiday week-thinned trading. Tsys may have pressure amid need to get
price concession to help the 11:30am ET US$13B 2Y FRN reopening and the 1pm ET
US$34B 5Y note auction; Tues had a so-so $26B 2Y auction. 
- TOKYO: More drama in Asian stocks than US Treasuries as Shanghai stock index
closed down 1.6%.however Japan's Nikkei stock index +0.% 
- LONDON: Tsys had slight brief gain in holiday week trading as UK Gilts rose.
WSJ: PIMCO's Richard Clarida, Lawrence Lindsey considered for Fed VC  post.
Crude oil weak on profit taking on Tues gain after terrorists hit a  Libyan oil
pipeline. Tsys 2/5Y, 2/10Y, 5/30Y all flatten mildly. Nominal Tsys and TIPS
trade roughly comparable. Value jostling in short-dated bills on yearend RP
pressures, debt ceiling issue. 1mo bill rates leapt up to 4bp to 1.225% in Asia,
yet still below 1.53% GCF repo rate. US HIGH-GRADE CORP BOND ISSUANCE: Quiet;
Jan: potential Philippines bond, John Deere maybe etc. 
- OVERNIGHT RP: Tsy 5-year tightens to -0.70% amid pre-auction shorts; 10Y also
tight at 0.36%.

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