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Tsy futures trading mildly higher,.....>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading mildly higher, off early overnight highs/mid-
to upper half of range, light but improving volume as Japan back from one day
holiday, general quiet at start of two day FOMC policy meeting. US$ firmer vs.
Yen, equities firmer (emini +1.5, 2504.25), gold little higher (+0.97, 1308.50),
oil firmer (WTI +0.37, 50.28).
- Asia, buying kicked off early, end user buying across curve, real$ buying in
the intermediates, asset managers bought 5s and 10s, Japanese accts bought 5s
and sold long end, insurance portfolio buying long end. Nikkei gained 2%.
- London, carry-over buying followed by mild two way, sources reported bank
portfolio buying 3s and 5s, European accts bought 5s and sold 7s, real$ buying
10s, end users and foreign central bank selling 10s and 30s. Latest gains on
Rtrs ECB source story re: end date bond buy program.
- Swaps, spds running steady to marginally tighter, light flow included bank
paying in ten year notes; fast money paying occurred in the belly. Overnight
repo tight in 3s, 5s, 7s and 10s.
- Eurodollars, mildly higher, top of range, recovering from Mon's sale.

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