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Tsy futures holding near session....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsy futures holding near session highs early in the second
half, reversed mildly weaker levels from the open after Fed chair Yellen
delivered Jackson Hole speech w/no comments on policy direction or eco outlook.
Volatility evaporated as rates adjusted higher but holding to narrow range.
Little/no react to second-tier data.
- Large Block buy 11.9k FVU 118-13.75; two-way flow in lead-up to Fed Yellen
speech; 2/10Y, 2/30Y, 5/30Y curve flatteners done; FX-tied buying as USD slipped
vs. Yen; heavy Sep/Dec Tsy roll volume, Sep Tsy option expiration w/low pin risk
- Tsys seemed to draw buying spurred by Dallas Fed Kaplan comment that terminal
rate was closer to 2.5% than 3.0%; also that mkt or real estate correction could
be healthy, that correction of high asset valuations are not a systemic risk and
may even be "healthy", but he was watching the risks from debt build up.
- Apparent fat-finger in Gold futures sent contracts tumbling $10 off highs in
early trade(tapped 1280.0 vs. 1292.0 high), rebounded back to 1292-1294.0 area
soon after.
- Fed Yellen defended post financial crisis financial controls.

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