**** Tsys trading stronger, off.....>

US TSYS SUMMARY: **** Tsys trading stronger, off top end of range on heavy

volume (TYH>1.5M) w/global equities continued rout overnight. Latter rebounding

on heavy chop, emini actually traded +7.0 briefly from -30.0 few minutes prior,

back lower currently. CME vol index VIX>50 first time since Aug 2015, aftermath

of leveraged short vol/inverse VIX ETF hedging.

- US$ weaker vs. majors, equities weaker (eminis off lows at 2602.25, -5.50),

gold up small (XAU 1340.0), West Texas crude weaker (WTI -0.88, 63.27).

- Asia, brief selling following Mon's late gap bid on stock rout, rebounded to

new highs (10Y yld slipped to 2.6459% low). Heavy repositioning w/rate hike

probability for year cut in half on rally, curve stop outs, fast$, props sold

shorts-belly, real$ sold 30s as rates pared gains into London cross.

- London, pared gains early, rebounding as equities hit skids and US$ weakened,

heavy two-way, bank buying intermediates, carry-over real$ selling long end.

- Swaps, spds running mixed, spd curve continues to flatten. Decent receiving in

2s-10s macro fund and banks, 5s30s steepener.

- Eurodlr futures higher, well off highs, heavy volume, 3M LIBOR-0.0027, 1.7907%