Tsys trade mixed, long end.............>

US TSY FLOWS: Tsys trade mixed, long end outperforming (long end liquidity

challenged going into holiday mkt: earlier Block of +2,696 WNH at 162-05, buy

through post time offer of 162-01 that helped push follow through buying on

screen to late overnight high of 162-10, and adding to Wed's sharp post-FOMC

curve flattening. Recession signal chatter on the rise again as yld curves

pancake. 30YY sub 3.0% first time since late August.

- Overnight flow includes decent two-way in 5s and 10s, mild but better buying

in long end from real$; better selling Eurodollar Whites (EDH9-EDZ9),

particularly in lead quarterly after 3M LIBOR set +0.0341 to 2.8237%

(+0.0230/wk). Note, 3M FRA/OIS spiked to 29.45H currently +1.15 at 28.30; 2Y

swap widens accordingly to 14.19 vs. 13.75 at moment (+1.25).

- On tap Thursday: Aside from weekly claims and the Bloomberg comfort index for

December; Leading Indicators for November (flat estimate); Philadelphia Fed Mfg

Index (15.0 est).

- Tsy cash/ylds: 2Y 100-05.5 (2.656%), 5Y 101-02.75 (2.637%), 10Y 103-01.5

(2.769%), 30Y 107-20.5 (2.986%)