Tsys trading mildly higher, near.......>

US TSY FLOWS: Tsys trading mildly higher, near middle narrow overnight range on

moderate futures volume (TYH appr 350k). General quiet w/many sidelined ahead

FOMC policy annc w/SEP, Fed chair presser 30 minutes later. Rate hike of .25 bps

(funds range to 2.25%-2.50%) with a dovish tone widely anticipated, IOER .20bps.

- Mixed cross markets, sovereign spds tighter (BTP/Bund 5Y -17.0 on budget

progress), West Texas crude mildly higher after Tue's rout (WTI +.17 at 46.41),

equities firmer (SPX +16.5 at 2554.5).

- Ongoing bid for EDH9, covering shorts as rate hike % for next year moderates

(OI for EDH9 a healthy 1.37M). Block buy 3k Green packs (EDH1-EDZ1).

- Spds running tighter across the curve -- back to mid-June 2016 levels for the

2Y while spds out the curve are back to early 2018 levels. Ongoing year end

customer position squaring amid constrained balance sheet for dealers. Mixed

overnight flow w/better rate and spd receiving, some fading move in 2s ($460m

payer at 2.7775%, 2s3s4s and 3s5s10s payer flys. 

- Tsy cash/ylds: 2Y 100-06 (2.652%), 5Y 101-01 (2.651%), 10Y 102-20.5 (2.816%),

30Y 105-31 (3.068%)