Tsys holding mixed levels ahead the....>

US TSY FLOWS: Tsys holding mixed levels ahead the Jan FOMC minutes release,

curves steeper with long end underperforming but off midmorning lows. 

- Minutes release will be a little delayed, perhaps sloppy in the distribution

of relevant headlines as normal lock-up in DC canceled due to snowstorm closure

of US gov today. Minutes will be available at top of hour, but no time to take

it in/process under normal circumstances. Be wary of headlines that may be taken

out of context or misconstrued.

- Two-way trade, in lead-up, deal-tied selling, curve steepeners, short covering

in front end, earlier program and prop selling in long end as equities near 3

month highs. Decent Tsy futures volume for midday largely due to surge in

March/June rolling. Better buying upside calls on net.

- Despite reversal in short end post 3M LIBOR higher set, March Eurodollar

futures back higher.

- Tsy cash/ylds: 2Y 100-01 (2.479%), 5Y 100-06.75 (2.453%), 10Y 99-28.5

(2.636%), 30Y 100-05 (2.991%).