Tsy futures trading weaker, mid- to....>

US TSY FLOWS: Tsy futures trading weaker, mid- to low-end of narrow range on

decent volume (TYZ>535k) again driven by Dec/Mar roll action ahead Thu's first

notice day (Mar takes "top step" or lead quarterly w/Dec futures expiring latter

half of December). Equities firmer (emini +3.0, 2604.75) gold inching higher

(XAU +0.47, 1295.02), oil weaker (WTI -0.45, 57.66).

- Asia, Tsys opened mildly weaker, early insurance portfolio buying pushed

levels higher briefly, modest two-way w/better selling into London open.

- London, Tsys ignore outperforming EGBs. Flow included ongoing Dec/Mar rolling

in futures on good volume, selling in 5s, two-way in 10s w/bank portfolio

buying. Steady fx-tied selling as US$ gains vs. Yen (111.344 last).

- Swaps, spds running mixe, steeper spd curve in-line w/Tsy curve. Flow included

receiving in 5s and 10s, bank portfolio receiving intermediates vs. wings,

intermittent rate paying and deal-tied flow in belly to long end.

- Eurodollar futures, trading mixed in the short end to mildly lower out the

strip, small bid EDZ7 post LIBOR fix' (3M +0.0016 to 1.4788%, +0.0112/wk) off

rising pace.