Tsy futures trading mixed, curve.......>

US TSY FLOWS: Tsy futures trading mixed, curve flatter with long end

outperforming, new 10+ year lows for 2s10s yld curve -- 58.739 overnight low,

59.982bp last (-1.213). Equities firmer (emini +7.5, 2589.5), gold firmer (XAU

+0.91, 1277.77), oil steady (WTI +0.0, 56.42).

- Asia, Tsys opened steady to mildly higher, long end adding to Mon's gains.

Flow included Asian real$ and Japanese acct buying in long end, fx-tied buying

as US$ slipped vs. Yen (112.544 last), curve flatteners in 2s, 5s vs. 10s,30s.

- London, Tsys followed core EGBs higher on rather decent volume in 10s so far

(TYZ>350k). Flow included outright buying in Bonds, 5s30s flatteners (66.909,

-1.745 last). More recent fast$ and prop acct sold 2s and 3s, two-way in 5s

fast$ bought 10s and 30s, ongoing Dec/Mar futures roll, update shortly.

- Swaps, spds running mostly wider, 5y near steady; flow included USD47.3k DV01

5Y-10Y swap FLATTENER and USD73.1k DV01 5Y-8Y-10Y Fly, paying the belly.

- Eurodollar futures, trading steady to mixed, Whites through Greens

underperforming, LIBOR sets continue to climb, 1M +0.0187 to 1.3129%

(+0.0257/wk), 3M +0.0081 to 1.4540% (+0.0133/wk)