Tsys trading lower, off late...........>

US TSY FLOWS: Tsys trading lower, off late overnight lows on decent volume

(TYZ>400k). Some suggest bounce off lows tied to Vegas mass shooting, but that

occurred late Sunday. Timing of bounce off lows coincided w/bid in Bunds and

Gilts. Equities firmer (+4.75, 2520.75), gold weaker (-7.62, 1272.53) oil weaker

(WTI -1.11, 50.56).

- Asia, China market holidays (National Day, Mid-autumn Festival). Tsys traded

weaker after steady open, two-way in 10s Japanese acct selling in long end.

- London, carry-over sell interest w/hedge funds reported in 10s, steepeners in

2s and 3s vs. 30s, macro fund steepeners. End-user buying 2s and two-way in 10s.

Catalonia vote for independence, Spanish government could "impose direct rule,"

according to Independent.

- Swaps, mildly wider across the curve, light flow w/receivers in 2s and 3s

earlier followed by deal-tied selling in 5s.

- Overnight repo saw two year notes loosen while three and five year notes

tightened up. 

- Eurodollar, weaker across the strip, near top end of range on decent volume.