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*** Treasuries rally hard amid more.........>

US TSYS
US TSYS: *** Treasuries rally hard amid more short-covering buying dominated by
fast money types. 10Y yield is at 2.289% vs. 2.33% pre-CPI. Tsys also see
FX-tied buying by the black boxes, as the US dollar weakens vs. the Japanese
yen. A brief bit of profit-taking occurred at the day's rally highs but mkt
keeps most rally gains. Rally occurred amid tame 0.1% Sept. core CPI.
- "This rally reflects all the guys getting out of their Treasuries shorts,"
said one veteran trader at a primary dealer. "The real money already had bought
Tsys at the auctions this past week" in 3Y, 10Y and 30Y auctions, he added.

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