Tsys trading mixed by the close on.....>

US TSY/RECAP: Tsys trading mixed by the close on Friday, long end outperforming

as March'18 Ultra bond made new session highs in late trade, curves back to

making new 10+yr lows: 2s10s -2.298, 51.125; 2s30s -4.912, 84.210; 5s30s -3.960,

52.661. Tsy correlation to US$ breakdown, dollar bounce not translating to

weaker long end rates. Quiet end to week on light volume (TYH<800k). 

- Equities made new highs in late trade, emini +25.25, 2681.25; gold higher as

well, XAU +2.90, 1255.82. Choppy reacts to any word on tax bill from DC. 

- Knock-on support for long end Tsys after Gilts rallied in early trade. W/FOMC,

BOE and ECB policy annc's in the rear mirror, desks set sites on clearing the

books for upcoming holiday closures and thin volumes. After a mixed open, swap

spds narrowed across the curve, sources cited program receiving as Tsy curve

resumed flattening; flow includes $109.8k DV01 5s7s steepener after appr $100k

DV01 2s5s flattener and 10Y switch around 2.351-.35125%. 

- T-Notes lower at the start of Asia on Monday after Republicans agreed to tax

plans over the weekend, vote planned midweek. T-Notes down 3+ ticks at 124.10,

10-Year yield +1.4bp at 2.367%.