Tsys trading marginally................>

US TSY FLOWS: Tsys trading marginally mixed/see-sawing around steady by midday,

generally quiet ahead midweek data pick-up and Thu's FOMC minutes from early

Nov.

- Modest block sales in TYH (-6.75k TYH 119-00.5) and USH (-3k 139-06). Heavy

Tsy futures volume tied to massive rolling from Dec to Mar, latter takes top

step Friday. 4- and 8W bills stopped out earlier, awaiting results of $40B 5Y

note auction (9128285P1) shortly. 

- Other flow largely two-way earlier with buyers in intermediates to long end

over last few minutes including real- and fast$, month end extension buying. 

Modest corporate and pre-auction hedging. Early prop and program selling around

Fed Clarida comments: stressed the importance of raising interest rates

gradually as officials evaluate incoming data and refine their estimates of the

neutral rate of interest and natural rate of unemployment.

- Tsy cash/ylds: 2Y 99-27 (2.827%), 5Y 99-30.25 (2.885%), 10Y 100-19 (3.054%),

30Y 101-06.5 (3.311%).