Tsy futures following core EGBs........>

US TSY FLOWS: Tsy futures following core EGBs higher, little off recent highs on

decent volume (TYH>560k), Dec starts w/unwind of week's risk-on move. Senate tax

bill vote postponed to 1100ET today. Equities lower (emini -10.00, 2638.00),

gold higher (XAU +1.02, 1275.96), oil firmer (WTI +0.52, 57.92).

- Asia, Tsys opened with modest carry-over month-end buying, holding narrow

range for most of session. Flow included pension and insurance portfolio buying

in long end, 5s30s flattened.

- London, better buying kicked off in Gilts and Bunds, spilling over to Tsys;

buying occurred in 10s around 2.40% level, end users and fast$ bought

intermediates.

- Swaps, spds running mixed, spd curve steeper vs. flattening in Tsys. Flow:

switch around 2.0675-2.0875%, recent paying in 5s and 10s and 5s 10s steepeners.

- Eurodollar futures, also trading firmer, short end stable despite 3M LIBOR set

+0.0072 to 1.4946% (+0.0270/wk).

- Overnight repo, old 2s, 3s and 10s tight, 5s at fail (-1.25% but off -3.5%

tapped Thu).