Tsys see-sawed higher on day,..........>

US TSY FLOWS: Tsys see-sawed higher on day, underpinned later in second half as

equity sell-off accelerated, classic risk-off ahead weekend and prospect of

limited liquidity going into Christmas and New Years holidays.

- US equities chopped lower late (SPX -50.0 at 2598.75), Gold softer (XAU -3.03

at 1239.06), West Texas crude reversing Thu's gains (WTI -1.40, 51.18).

- Muted react to today's data, Nov retail sales +0.2% vs +0.1% exp, but well

below +0.9% whisper; Nov IP +0.6% vs +0.5% expected.

- Flow included +9,500 Eurodollar Red pack (EDZ9-EDU0) Block at 0.0325, Large

>70k EDZ9/EDH0 spd buys from 0.035-0.040, >10k EDU1/EDZ1 at 0.025 and >20k

EDU9/EDZ9 +0.035.

- Slow start to next week, data highlights for Monday (estimates): Dec Empire

Manufacturing Index (21.0 est), NAHB home builder index (58 est), net TICS flows

for October, 13- and 26W bill auctions. Focus more on next Wed's FOMC policy

annc, SEP/dots and press conference by the Fed chairman.

- Tsy cash/ylds: 2Y 100-01 (2.729%), 5Y 100-22 (2.724%), 10Y 102-01 (2.886%),

30Y 104-16 (3.141%)