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Tsy futures trading weaker,............>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading weaker, following initial move in EGBs,
holding near bottom of range while EGBs rebound slightly. US Pres Trump said
will put more troops into Afghanistan, pressure Pakistan to not harbor terror
affiliated group. Equities firmer (emini +3.25, 2431.25), gold weaker (-6.44,
1285.44), oil weaker (WTI -0.09, 47.28). 
- Asia, Tsys receded as US stocks carved out small gains. Flow included foreign
central bank selling 5s and 10s, potential set-ups ahead next wk's 2/5/7yr note
auctions. North Korea saber rattling, warns of "merciless" revenge as US and S.
Korea continue in nine remaining days of military drills.
- London, Tsys largely ignored rebound in Bunds and Gilts off lows. Sources
reported credit tied selling and curve steepeners, bank portfolio sales in 5s
and 10s, FX-tied selling as USD firms vs. Yen. Sep/Dec futures roll volume
picking up.
- Swaps, spds running mixed, spd curve steeper, bank rate paying in 5s noted
- Eurodollar, modestly lower across the strip, short end outperforming. Recent
buy +8k Red Mar'19/Green Mar'20, 0.185.

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