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Tsys trading firmer, near top end of...>

US TSY FLOWS
US TSY FLOWS: Tsys trading firmer, near top end of range on decent volume
w/Europe back from Boxing day holiday (TYH>385k), yld curves flatter.
- Equities giving back portion of Wed's strong rally (SPX -38.25, 2432.75); US$
index mildly weaker (DXY -.266 at 96.784); Gold stronger (XAU +6.30 at 1273.45);
West Texas crude giving back small portion of Wed's sharp rally (WTI -0.87 at
45.35).
- More robust overnight trade included two-way in shorts to intermediates during
Asia hours, better buying in intermediates to long end during London hours, bank
portfolio buying short end, macro fund buying 5s.
- Swap spds mildly wider to steady out the curve, light rate paying in 5s-6s.
- Data highlights for Thursday: Conference Board confidence for December (134.5
est); Nov New Home Sales and Building Permits Revision release canceled due to
US Gov shutdown (see 0717ET bullet); also US Tsy $32B 7Y note auction
(9128285T3)
- Tsy cash/ylds: 2Y 99-26.25 (2.589%), 5Y 99-30.5 (2.633%), 10Y 103-01 (2.770%),
30Y 106-25.5 (3.027%)

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