*** Tsys trading mixed into the.....>

US TSYS SUMMARY: *** Tsys trading mixed into the second half after a weaker

open, curve flatter with long end near session highs; 10Y yld holding below 2.4%

at 2.372%. Quiet at start of 2-day FOMC policy meeting, relatively low volume

day (TYZ<860k), low open volume w/Germany out on holiday. 

- Month end support contributing to mild bid that emerged after the opening

bell, limited react to 3Q ECI +0.7% as expected, US Redbook Oct store sales

-1.3%, US Aug Case Shiller home price index +0.5% m/m and strong Oct Chicago PMI

number of 66.2 up from 65.2 in Sep. Carry-over support after bid developed in

Euro bonds.

- Modest two-way across the curve w/relative value and month end buying vs.

FX-tied sales as US$ climbed vs. Yen. Modest deal-tied flow in the mix. Two-way

position squaring ahead Fri's NFP (315k est vs. -33k in Sep)

- Powell leads replacement Fed chair poll at 90% ahead expected annc by US Pres

Trump Thu. Taylor pick likely to roil mkt/bear flattening rates.

- Swap spds holding mildly tighter amid receiver flow in 5s and 7s on modest

size, payers in 2s helping flatten the spd curve slightly.