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Tsys trading stronger, paring gains....>

US TSY FLOWS
US TSY FLOWS: Tsys trading stronger, paring gains to near middle of overnight
range at the moment. Focus on yld spd inversion in short end (see 0705ET POV
bullet), carry-over from Mon's sharp move spurring renewed speculation over
future odds of recession, Fed policy, etc. 
- Note, Fed chair Powell eco-outlook testimony to JEC that was scheduled for Wed
has been cancelled due to day of mourning closure; no mention of text --
unlikely to be issued w/no testimony ahead of Fri's media blackout through Dec
20.
- Early risk-off support as equities trimmed week opener gains, decent two-way
flow on heavier futures volume by the bell (TYH>590k). Tsys pared bid, US$ waned
vs. Pound Sterling after EU court aide suggested earlier Britain could withdraw
from Article 50 unilaterally. 
- Eurodollar futures mildly bid, front end rebound after 3M LIBOR scaled back
Mon's move -0.0125 to 2.7388% (+0.0027/wk). Swap spds mixed, spd curve steeper,
deccent rate paying in long end by real$. Tsy cash/ylds: 2Y 99-27 (2.833%), 5Y
100-06.5 (2.829%), 10Y 101-11 (2.966%), 30Y 102-22 (3.233%).

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