US Treasuries end Tuesday higher....>

US TSYS SUMMARY: US Treasuries end Tuesday higher after slowly creeping higher

in two-way flows since about 8am ET. Tsys had seen late asset allocation as US

stocks declined, and talk of 737-name stock sale program. 

- Tsys in late action made new session high prices. MKt saw fairly muted tradd

into Wed 8:30am ET ADP private payrolls and Fri 8:30am ET US Nov. nonfarm

payrolls data. 

- Tsys futures earlier afternoon traded mixed, curve flatter, bonds rebound.

Short-term tactical focus, position-squaring in futures, options heading into

Fri expiration of debt limit lifting. 

- Gold hammered earlier, similar to week-ago flow: $1B nominal seller that

dropped gold unexpectedly; last week's gold selloff timing coincided with

chatter over large Mideast/Saudi Acct cashing in. Latest move does NOT appear

related to a fairly small US$ blip higher. 

- Tsy futures had 6,000 contracts sold in a block at 1:16pm ET , sell through at

124-07. 5/30Y curve flattened to +58.1 bps. 

- 3pm ET: US 2Y 1.826%, 3Y 1.939, 5Y 2.151%, 7Y 2.283%, 10% 2.356%, 30Y 2.732%.