*** Tsys finally stabilized at day's low....>

US TSYS: *** Tsys finally stabilized at day's low prices after early selloff,

then dip buying. Tsys opened NY  weaker on day, then technically-driven sales

pushed mkt lower; cash 10Y note yield broke above 2.48% 10Y yield level (now at

2.486% after mild dip buying).

- The next big 10Y yield level is 2.50%. A major break above that 2.50% level

could leave the market in a technically very vulnerable position amid thin

pre-Christmas liquidity too, said traders.

- "It's been a long time coming," said one veteran trader of technical sales.

"But the question is, 'Do we bring in sell-stop selling if we break above 2.50%

yield?' If we did, it would be a problem for the market as the market is very

thin" so such bearish price action could be  magnified.

- Tsys also saw 2/5Y, 2/10Y, 5/30Y curve steepeners/flattener unwinds done.