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Tsy futures trading weaker, at/near....>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading weaker, at/near recent overnight lows on
modest volume (TYH<200k); curves mildly mixed (2s vs. 10s and 30s mildly wider,
5s30s -.448 at 52.743). Equities stronger (emini +10.0, 2692.0), gold stronger
(XAU +3.60, 1259.05) oil little firmer (WTI +0.22, 57.52). Market eager for any
word on Tax reform bill vote.
- Asia, Tsys opened/held mildly weaker range into the London cross over, two-way
in 5s and 10s with misc sellers met by pension fund and insurance portfolio
buying, consolidation heading into Christmas and New Year holidays.
- London, Tsys extended sell-off, following EGBs early on. Carry-over year-end
pension rebalancing/asset allocation flow amid thin markets/light volume. Spec
acct buying in 5s
- Overnight repo saw Tsy 2Y notes tight ahead next week 2-/5-/7Y note auctions. 
- Swaps, spds running steady/mixed, belly mildly tighter; light flatteners in
2s10s and 12s30s, receiving in belly of 5Y-7Y-10Y fly. 
- Eurodollar futures, mildly weaker across strip EDH8 new lead w/EDZ7 expiring
98.3745 w/3M LIBOR set +0.0142 to 1.6255% (+0.0645 last wk).

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