Tsys mildly higher in short to.........>

US TSY FLOWS: Tsys mildly higher in short to intermediates, long end under mild

pressure. Very light holiday volumes (TYH appr 108k so far) w/Europe closed for

Boxing day holiday. 

- Equities firmer (SPX +13.0 at 2354.75) after opening appr -9.0. US$ index

mildly higher (DXY +.216, 96.797), Gold firmer (XAU +1.90, 1231.75), crude

firmer (WTI +0.72, 43.25).

- Limited data includes Redbook retail sales; Case-Shiller Home Price Index and

Richmond Fed Manufacturing Index. Tsy auctions resume ($41B 5Y, $18B 2Y FRN).

- Limited flow to report, expect political headlines to remain risk factor

(despite VIX trading lower after Mon's rally, currently -1.57 at 34.50), Tsy Sec

Mnuchin joins Fed chair Powell as target of Trump' ire.

- Eurodollar futures mixed w/front end trading firmer; 1Y spds holding around

Mon's inverted lows, EDH9/EDH0 -0.085; Tsy yld curves mildly steeper. Swap spds

mostly wider w/short end leading move.

- Tsy cash/ylds: 2Y 99-28 (2.562%), 5Y 101-11.75 (2.576%), 10Y 103-08 (2.745%),

30Y 107-06 (3.006%)