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*** Tsys flows today included fast.....>

US TSY FLOWS
US TSY FLOWS: *** Tsys flows today included fast money and technical sales early
on 0.4% Aug CPI/0.2% Core CPI and on technical Tsys weakness (10Y yield hit
2.216% high yield, vs. 2.197% currently). Tsys then saw some better dip buying
on technical stabilization/N.Korea jitters. And real money buying in occurred in
5Y, 7Y, 10Y, then two-way flows. 
- Hedge funds and real money then did "pockets" of selling, while foreign
central banks are deemed surprisingly quiet, said observers. Some trapped longs
are still praying for  Tsys market to go up a bit higher (need yields say 4-5
bps lower vs. current 2.194% 10Y). Macro funds generally await FOMC mtg next
week but did mild short-covering today after recent Tsys sales in past few days;
macros also did some 5/30Y flattening as recent flattest levels reached.
- Meanwhile everybody and their brother in high-grade US$ corporate bond
issuance is rushing to push stuff out before the FOMC meeting, in case FOMC
upsets the relative Tsys calm.

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