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*** Tsys broke out of a narrow,.....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys broke out of a narrow, mildly mixed range after midday
as Pres Trump and Congress agree on stop-gap $7.85B funding for Hurricane Harvey
aide AND 3M debt ceiling ext'n annct!
- Moderate risk on/risk-off unwind followed limit ext'n annc. Tsys made new
session lows, equities gained (emini +6.75, 2466.50); USD gaining vs. Yen; Vol
knocked lower along w/gold (-7.14, 1332.51).
- Tue's 4wk bill yield rise over 2Y note yield has vanished. No real surprise
inversion is gone following stop-gap debt ceiling extension to Dec; general
opinion will invert again in Dec as time gets short. Swaps held wider lvls 
- Flow largely two-way in the first half, sporadic consolidation after Tue's
sharp curve flattening safe-haven rally. Geopol tensions re: N Korea steady,
markets reactionary. Specs and fast$ buying in short end early, real$ +10s and
30s, bank portfolio 2-way in long end. Flurry sales by real- and fast$ following
debt ceiling ext'n.
- Decent deal-tied flow after Tue's heavy $18.5B placement.
- 3pm ET: 2Y 1.302%, 3Y 1.410%, 5Y 1.681%, 7Y 1.930%, 10Y 2.101%, 30Y 2.722%

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