US FI weaker, Tsys and Eurodollar......>

US TSY FLOWS: US FI weaker, Tsys and Eurodollar futures near middle of session

range, rates generally climbed off early session lows as blush came off of

Brexit deal headlines, high-bar DUP vote set for Saturday. Not much of a react

to data: Sep New Home Starts soft.

- Rates weaker as Brexit headlines continue to drive Tsy moves: risk-on in early

London trade on UK/EU "deal" annc, but rates bounced off lows as DUP officials

said they were NOT on board (high hurdle: gvt would need 19 Labour votes even if

it got the support of every Tory MP to pass).

- Sources reported prop and fast$ buying 5s-10s, light deal-tied sales in 3s and

5s, 2s10s steepeners. Risk-off tone gained momentum around midday w/equities

back near steady, Tsys nearing early London highs with real$ buying long end

more recently. Decent two-way deal-tied flow as bank names resume issuance ($4B

Bank of America: $2B 6NC5 +88, $2B 11NC10 +113). 

- US Tsy $17B 5Y TIP auction strong, awarded 0.054%, 2.75 B/C. The 2-Yr yield is

up 1.2bps at 1.5958%, 5-Yr is up 1.3bps at 1.574%, 10-Yr is up 1.4bps at

1.7535%, and 30-Yr is up 1.3bps at 2.2377%.