Tsys trading firmer but near low end...>

US TSY FLOWS: Tsys trading firmer but near low end of moderate range, yield

curves steeper/near top end of range (5s30s +2.123, 47.50 vs. 48.035H), decent

futures volume (TYH>440k). Equities softer (SPX -15.0 at 2567.5), US$ index

little firmer (DXY +.082 at 95.301).

- Limited data due to US Gov shutdown (weekly claims, nat/gas stocks), but no

less than six Fed speakers on tap, Fed Chair Powell getting opportunity to rebut

Wed's balanced but dovish minutes. 

- US Tsy $16B 30Y bond auction (912810E9) spurring some pre-auction short sets,

desks eyeing more corp issuance.

- Overnight flow includes two-way in short end earlier followed by decent buying

in TUH (appr 28k from 106-01.5 to -02.25) post LIBOR set (-0.0020 to 2.7969%,

-0.0070 wk), prop buying 5s, misc acct buying 10s and 30s, real$ 10s30s

flatteners. 

- Tsy cash/ylds: 2Y 99-30 (2.530%), 5Y 100-14 (2.529%), 10Y 103-20.5 (2.699%),

30Y 107-06 (3.007%)