Tsys see-sawed in lower range all......>

US TSY FLOWS: Tsys see-sawed in lower range all day, off lows by the bell as

equities continued to recover from last week's shellacking. Multiple factors at

play for the apparent risk-on move include month-end rebalancing flow.

- Data picked up today: w/stronger than exp Oct ADP private payrolls (+227k;

smaller than anticipated Sep down-revision to +218k), Oct MNI Chicago PMI little

weaker than expected (58.4 vs. 60.0 est).

- Decent volume belied rather subdued trade w/many close to sidelines ahead

Fri's jobs report, next week's midterm elections and FOMC (no change expected

from Fed).

- Two-way flow w/better sellers on net, prop and fast$ acct buying intermediates

late morning. Modest corp deal-tied hedging, swap-tied selling in short to

intermediates, decent two-way in 5s.

- Tsy futures nearly extended session lows late on pick-up of month

end/rebalancing flow (TYZ volume gained over 125k in last 10 minutes), lrg 15

FVZ Block buy 112-13. Tsy cash/ylds: 2Y 100-00 (2.873%), 5Y 99-15.5 (2.985%),

10Y 97-21.5 (3.151%), 30Y 92-21.5 (3.392%).