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Tsys see-sawed higher overnight,.......>

US TSY FLOWS
US TSY FLOWS: Tsys see-sawed higher overnight, currently off top end of range,
moderate volume (TYH>340k), yld curves bending mildly steeper. Knock-on
cross-mkt support after weaker China retail sales and European PMIs, sovereign
spds running mildly wider (BTP vs. Bund 5Y +5.0); GBP/US$ weaker but still above
Tue's 18M lows (currently 1.2569, -.0074), US$/Yen mildly lower but near top
overnight range.
- US Equities weaker (SPX -22.0 at 2627.5), Gold softer (XAU -3.95 at 1238.04),
West Texas crude paring portion of Thu's gains (WTI -0.40, 52.18).
- Salient data highlights for Friday (estimates): Retail sales (0.8% prior, 0.1%
estimate); industrial production (0.1% prior, 0.5% est); capacity utilization
(78.4% prior, 78.7% est).
- Overnight flow two-way in early Asia hours turned better bid in shorts to
intermediates in early London trade. Swap flow includes rate paying in 5s at
2.8250%, 2s3s5s and 3s5s10s receiver flys. Still relative quiet, tentative
positioning ahead Christmas, New Years holidays. Tsy cash/ylds: 2Y 100-01
(2.729%), 5Y 100-22.75 (2.719%), 10Y 102-02 (2.882%), 30Y 104-14 (3.143%)

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