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Tsys pared losses late as equities.....>

US TSY FLOWS
US TSY FLOWS: Tsys pared losses late as equities erased gains/traded lower on
back of US Trump/China Xi talk headlines, speculation over increased tariffs if
talks fail. Yld curves off steeper levels. Otherwise, relative quiet in second
half trade. 
- Vol index surges on late tone change for risk, VIX +2.75 to 26.91H (not far
from last Fri high of 27.52...prior high on Oct 11 of 28.84); US$ index firmer
(DXY +.228 to 96.587) US$/Yen making pared gains +.33 to 112.24 late.
- Tsys had extended overnight lows into early NY trade amid cautious risk-on
move w/equities rebounding after last week's equity rout. Early driver out of
Germany w/reports that Chancellor Angela Merkel will step down as head of the
CDU, Bunds sold off w/Tsys in tow. Sovereign spds narrowed significantly
(BTP/Bund 5Y -22.1).
- Busy data week while Fed in blackout ahead next wk's FOMC; data picks up in
second half w/ADP private employ, PMI, and Oct NFP.
- Tsy cash/ylds: 2Y 100-03.5 (2.814%), 5Y 99-25.75 (2.916%), 10Y 98-08 (3.081%),
30Y 93-27 (3.326%).

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