Tsys continued to underscore........>

US TSYS SUMMARY: Tsys continued to underscore correlation w/ US$/Yen today,

yields see-sawing lower w/the pair while higher Tsys also corresponded to a

rebound in Italian ylds vs bunds, reversing Mon's risk-on tone. Tsy yld curves

rebounded/steepened w/5s30s +2.142 to 31.064. USD index firmer (DXY -.212,

93.826; US$ vs. Yen -0.19, 109.62); stocks near steady (emini +0.5, 2746.0);

gold higher (XAU +6.75 1298.75); West Texas crude higher (WTI +0.65 to 65.40).

- Relative subdued trade as rates follow EGBs on back of higher Italian ylds vs.

Bunds. Second tier US data, no Fed speak -- back to headline watching w/Italian

Senate confirm vote a non event.

- Flow included two-way in shorts to intermediates, prop and fast$ selling

intermediates, decent deal-tied hedging across the curve. Large duration

weighted 5s/ultra-bond steepener Blocked: +17,541 FVU 113-16, buy through -14.5

pot time offer vs. -3,186 WNU 157-18, post time bid. Large buyer 30k Red Dec19

Eurodollar futures 97.06. Heavier Tsy option flow in 5s and 10s. 

- Tsy cash/ylds: 2Y 100-00.7 (2.484%), 5Y 99-31.25 (2.753%), 10Y 99-21.5

(2.911%), 30Y 101-03.5 (3.067%)