Tsys trading firmer at start of FOMC...>

US TSY FLOWS: Tsys trading firmer at start of FOMC day-2 (mkt fully expect 25bps

cut from Fed, focus turns to late Oct w/current chances of third 25bps cut in as

many meetings at just under 50%). 

- Tsys futures see-saw around top half of range after extending overnight high

early London trade, moderate volumes (TYZ>340k); yld curves bull flattening,

3M10Y appr 16bps flatter from Fri's (inverted) highs.

- Carry-over O/N repo focus, GC repo currently 2.50% (ICAP); second repo

operations in as many day for $75B w/ results after 0830ET close; precursor to

possible IOER cut from Fed today (chatter of by 35bp). 

- Secured Overnight Financing Rate (SOFR): 5.25% (2.43% Tue), $1.177T.

- Overnight flow two way, fast$ and prop acct selling intermediates into

overnight bid, real$ +30s.

- The 2-Yr yield is down 2bps at 1.7046%, 5-Yr is down 2.3bps at 1.6344%, 10-Yr

is down 2.6bps at 1.7752%, and 30-Yr is down 2.5bps at 2.2428%.