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Tsys trading mostly bid on heavy.......>

US TSY FLOWS: Tsys trading mostly bid on heavy volume (TYZ>1.0M) in post Midterm
election trade, long end outperforming -- yld curves crushed (2s10s -4; 2s30s
-5; 5s30s -3.3). Higher equities apparently like the divided Congress; US$
- Heavy two-way flow in shorts to intermediates during early Asia hours, bid
developed late Tuesday after polling counts came in largely as expected (Dems
take House, Reds keep Senate) but with disappointing losses for Dems in Fl and
- Election event risk in rear-view has VIX vol index -2.36 to 17.55. FOMC
Thursday, but no rate change expected or priced in.
- Prop, real$, bank portfolio buying in 10s and 30s, early real$ receiver in
30s, two-way in short end payers 3s at 3.1725%, 2s3s5s payer fly. Pre-auction
short sets ahead $19B 30Y bond auction (912810SE9) today.
- Tsy cash/ylds: 2Y 99-27.75 (2.940%), 5Y 99-06 (3.050%), 10Y 97-11 (3.200%),
30Y 92-13.5 (3.406%).

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