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

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.