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Tsys hold moderately higher after......>

US TSY FLOWS
US TSY FLOWS: Tsys hold moderately higher after midday, off top end of range
volumes tapering off as futures rolls wind down, Dec takes lead Fri. Quiet, late
summer trade, thin markets continues, rates mildly sensitive to EM and trade
related headlines, and US$ strength vs. core currencies. 
- Rates had sold off/pared gains on positive trade headlines pre-open (EU
willing to scrap industrial, auto tariffs Politico reports) seems too good to be
true while Tsys retraced. Second day rates showed little react to in-line data:
weekly claims (213k), personal income (0.3%), total PCE price index (0.2%);
Chicago PMI Friday.
- US$ strong all day, DXY +.167, 94.767 (94.469L/94.900H), $/Eur off -0.0051
1.1656, $/Yen weaker -.45 111.23; equities off lows (emini -3.75, 2911.0); Gold
weaker (XAU -7.57, 1199.08); West Texas crude firm (WTI +0.45, 69.99).
- Underlying month-end support, otherwise mixed two-way flow, positioning ahead
extended Labor Day holiday weekend, light deal-tied flow, spd curve flatteners
and front-end swap flies. Tsy cash/ylds: 2Y 99-29.75 (2.657%), 5Y 99-30
(2.762%), 10Y 100-01.5 (2.868%), 30Y 99-23 (3.013%).

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