Tsys trading mixed into the close,.....>

US TSY/RECAP: Tsys trading mixed into the close, month end flurries with a slug

of TYZ at 124-30 (-2.5/32) after the bell, hearing sales. No real imbalances,

Tsy sets' look in-line with late price action so far. Curve flatter w/long end

outperforming. Quiet month end, start of two-day FOMC policy meeting (no

shake-up expected Wed, rate hike in Dec largely priced in). - Relatively low

volume day (TYZ<1.25M), low open volume w/Germany out on holiday. 

- 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 on day, relative value and month end buying vs. FX-tied sales

as US$ climbed vs. Yen. 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 of expected announcement

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

- T-Notes last at 124.27+, 10-Year yield last at 2.385.