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US returns from extended holiday.......>

US TSY FLOWS
US TSY FLOWS: US returns from extended holiday weekend, risk-off carry-over with
equities trading weaker, unwinding risk ahead of Wednesday's flood of dat, Fed
speak and FOMC minutes release where tapering of bill buying and repo operations
in focus.
- Yld curves bull flattened with the 3M10Y re-inverting, some light curve
steepener interest early faded quickly.
- Risk-off support evaporated around midmorning as as equities inched off lower
levels. Implied vol receding. Recent flow includes fast- and real$ selling
intermediates, program sellers in long end after real$ selling in
30s. 
- Risk-off support gradually evaporating as equities continue to move off lower
levels. Implied vol receding. Recent flow includes fast- and real$ selling
intermediates, program sellers in long end after real$ selling in
30s. Heavy option flow favored buying low delta, upside call insurance.
- The 2-Yr yield is down 2bps at 1.4075%, 5-Yr is down 2.6bps at 1.3897%, 10-Yr
is down 3.1bps at 1.5542%, and 30-Yr is down 3.2bps at 2.007%.

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