Tsys trading stronger bumping around...>

US TSY FLOWS: Tsys trading stronger bumping around top end of late overnight

highs even as equities enjoy modest dead-cat bounce (in fairness to dead cats --

and financials, markets pricing in 25bps hike from the Fed tomorrow with a

dovish tone going forward). Pain trade would be a hawkish hike from the FOMC,

equities surely to extend sell-off. 

- US$ index mildly lower, US$/GBP and US$/Eur near recent highs; West Texas

Crude (WTI grinding off earlier lows, currently -1.10 at 48.78 vs. 47.84L).

- Overnight flow included modest two-way w/better selling during Asia hours,

concerted buying, short covering during early London trade, prop and option-tied

buying in intermediates. No deal-tied flow, some decent rate receiving in short

end as well.

- Tsy cash/ylds: 2Y 100-04.75 (2.669%), 5Y 100-30.5 (2.666%), 10Y 102-15.5

(2.834%), 30Y 105-16.5 (3.090%)