Tsys traded weaker on the day, off.....>

US TSY FLOWS: Tsys traded weaker on the day, off lows to near midrange --

despite another decent volume day (TYZ>1.75M), trade was choppy amid little

conviction of "risk-on" as equities scaled back early gains. Have to read that

in light of late Mon's sharp gap lower in equities, (modest) rate rally, and

spike in volatility -- reflection of US/China trade headline sensitivity (let

alone spike in violence in US).

- US$ index climbed (DXY +.421, 97.00); Gold weaker (XAU -6.24, 1223.16)

- Better sellers amid two-way flow, corp-supply hedging in short end, better

swap-tied selling in short-end to intermediates, spd curve steepeners, decent

option-tied buying vs. puts on early weakness, bank portfolio and real$ selling

long end late. Fast$ and prop acct bought/covered shorts post Cons Conf. Ongoing

chatter over month-end asset allocation.

- Data picks up Wednesday: September ADP private payrolls (190k), Q3 ECI (0.8%),

Q3 non-farm productivity (2.4%) and Oct MNI Chicago PMI (60.4, 60.4).

- Tsy cash/ylds: 2Y 100-01.75 (2.843%), 5Y 99-22.5 (2.938%), 10Y 98-01 (3.108%),

30Y 93-09.5 (3.356%).