Tsys mildly lower, general risk-on.....>

US TSY FLOWS: Tsys mildly lower, general risk-on tone at the moment with

equities trading higher (SPX>+30.0), initial impetus appears to be narrowing of

BTP/Bund spds on positive budget chatter from Italy. Italian banks bid, European

and US shares on the follow.

- Slow start to busy week, Nov Dallas Fed manufacturing index, bill and note

auctions while NY Fed VP Richard Dzina will deliver keynote remarks at the

Clearing House and Bank Policy Institute's 2018 Annual Conference in New York at

1330ET. Aside from data, other factors to be mindful of include post holiday

sales, month end extensions and the ever-present sensitivity to domestic and

foreign headline risk.

- Decent Tsy futures flow largely driven by early flurry Dec/Mar roll activity:

TYZ/TYH appr 148.2k, 5.25 last; 11.0% complete. Moderate selling across the

board otherwise, mixed curve flow, mild corp deal and Tsy auction-tied selling

(13- and 26w bills, $39B 2Y auctions today).

- Tsy cash/ylds: 2Y 100-02.5 (2.832%), 5Y 99-29.25 (2.892%), 10Y 100-16.5

(3.063%), 30Y 101-05.5 (3.311%).