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Tsys trading near recent session.......>

US TSY FLOWS
US TSY FLOWS: Tsys trading near recent session highs, extending rally after
brief mid-morning bout of selling. Risk-off tone gaining momentum, equities
sliding lower (SPX -34.0, 2771.0). Sources reported largest sell program since
mid-February added impetus to move, now hearing asset allocation out of equities
into Tsys.
- Little to no react to earlier second tier data, focus on US/China trade
w/headlines heralding a deal soon (watching if/when some official on either side
throws cold water on positive sounding headlines). Some desks cite increased
oversight Democratic-driven oversight of Trump admin as well.
- Tsy yield curves continue to inching flatter. Decent deal-tied hedging adding
to flow, still await details, but Pfizer 5-part likely to lead in size, TD
Banks, MUFG, John Deere Capital adding debt in fronts to intermediates.
- Tsy cash/ylds: 2Y 99-29.38 (2.540%), 5Y 99-08.25 (2.533%), 10Y 99-04 (2.724%),
30Y 98-04 (3.095%).

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