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Tsy futures trading weaker early....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsy futures trading weaker early in second half, well off post
data lows on rather modest volume for a headline data release. Dallas Fed Kaplan
concurred weak NFP due to hurricane effect. 
- Rates made new lows following Sep NFP release -33k (vs. +70k est), first
negative read since Sep'10. Silver lining, AHE +.5, only clean data in release.
- Curve bear steepened, strong long end selling had 30Y yld climb to 2.9322%
before receding to appr 2.8900% on late morning safe-haven bounce.
- Late morning risk-off/safe-haven bounce: North Korea missile test chatter,
position squaring ahead extended US holiday wknd, Catalonia parliament meet Mon.
- Fed rate hike probability for Dec 13 FOMC climbed to 83.5%, Mar 21 FOMC hike
probability up to 38%.
- Flow included fast$ selling, 5s30s curve flatteners, 10s30s steepeners; brief
dip buying/short covering foreign central bank, real$ bought lows, program
buying as well. Strong US$ vs. Yen lent to early rate sales.
- Swap flow included flow includes small payer in 2s (1.7911%) and 2/5/10y fly,
paying the belly, 179.4 DV01, small receivers 5s and 10s

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