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Tsys trading firmer, off early.........>

US TSY FLOWS
US TSY FLOWS: Tsys trading firmer, off early London highs amid decent futures
volume (TYH>395k) despite rather quiet overnight action. Yield curves mildly
steeper for most part (5s30s +1.202, 50.539); equities weaker (SPX -5.5 at
2588.5); US$ index paring Thu's gains (DXY -.216 at 95.323).
- Tsys kicked off Asia hours weaker after late Thu's sell-off (possibly tied to
positive US/China trade noise, Vice Premier Liu He in DC for negotiations on Jan
30-31). Gradual fade w/Tsys steadily drifting off lows into London hours (news
of potential Brexit delay past Mar 29 quickly faded, GBP bounced, US$ slipped).
- Overnight flow included mixed/two-way flow in short end w/real$ and official
acct buying, early prop and fast$ selling shorts to intermediates, bank buying
10s.
- Limited data due to US Gov shutdown On tap for Friday: December CPI (0.0%,
-0.2%), CPI Ex Food and Energy (0.2%, 0.2%).
- Tsy cash/ylds: 2Y 99-29 (2.547%), 5Y 100-12.75 (2.537%), 10Y 103-16 (2.713%),
30Y 106-14.5 (3.043%)

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