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Tsys trading higher after the bell.....>

US TSY FLOWS: Tsys trading higher after the bell -- but well off early session
highs amid ongoing headline sensitivity rather than substantive economic data
ahead Wed's FOMC policy annc. 
- Rates surged well before NY open -- following EGBs lead on heels of EU Draghi
comments on potential stimulus,rate cuts if outlook doesn't improve. Tsy 10YY
slipped to 2.0148% low; Bund 10YY -0.07 at -.31, Swedish 10YY 0.0 for first
time. Curves bull flattening (choppy 3M10Y bounces off recent inverted low of
-18.565 to -15.209 late).
- Trump tweet criticizing Draghi comment drew little market react -- but Trump
tweet over "extended" meet w/China's Xi did the trick w/heavy program selling in
rates and heavy buying in equities. Fast- and some real$, prop and trading acct
bought at points on the way down, gamma hedgers squaring ahead Wed's FOMC still
no change expected, June cut chances gained early (Sep or Oct evenly distributed
around 80%, Dec appr 75%. Heavy option trade hedging lower ylds.
- The 2-Yr yield is down 0bps at 1.8684%, 5-Yr is down 2.2bps at 1.834%, 10-Yr
is down 3.6bps at 2.0578%, and 30-Yr is down 3.5bps at 2.548%. 

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