Tsys see-sawing near mid-range on......>

US TSY FLOWS: Tsys see-sawing near mid-range on heavy volume (TYZ>745k),

intermediates-long end pared gains as equities continue to rebound from

overnight lows.

- Mixed bag overnight, mkts traded w/risk-off tone as Asia trade crossed over to

London, weak Oct Eurozone PMI data culprit, Brexit angst, while BTP/Bund spd

actually tighter despite budget concerns. BoC policy annc on tap, 25bp hike to

1.75% expected.

- Two-way flow w/better buying from range of accts in the intermediates, real$

and bank selling long end last hour, pre-auction short sets ahead $39B 5Y

auction, two-way curve flow, 2s10s flatteners, 5s30s steepeners, modest

swap-tied flow, front end paying.

- Short end Eurodlr futures went offered after 3M LIBOR continues to surge

(+0.0182 to 2.5080%, +0.0309/wk); 3M FRA/OIS spd spiked to 36.45 and settles

back to 36.05 (+1.45).

- Tsy cash/ylds: 2Y 100-00.25 (2.869%), 5Y 99-16 (2.983%), 10Y 97-23 (3.145%),

30Y 93-08.5 (3.358%).