US Treasuries ended a shortened.....>

US TSYS SUMMARY: US Treasuries ended a shortened pre-Christmas session mildly

lower and curves flatter after rangebound trading on light volume. Pres. Trump

signed the major US tax reform bill.

- Lower than expected 1.3% Nov Durable goods/-0.1% ex-transport, and 0.1% Nov

Core PCE price index, yr/yr 1.5% (highest since June) and 17.5% Nov new home

sales surprised to upside. Tsys saw a tight range, initial mixed curve action,

curves turned flatter, esp 2/10Y, 2/30Y and to a lesser extent 5/30Y. No major

sellers despite 2/5/7Y auction supply next week, as there is geopol event risk

through long Christmas wkend. 

- Tsys supported late as US$/yen softened up a bit. Looking forward, Tsy supply

starts quick next week: Tues 1pm ET $26B 2Y sale. Corporate bond issuers are

silent now, back in action next year. 

- O/N RP saw 2Y, 5Y, old 3Y, 6M Bill all tight; Tsy G/C was at 1.53%. 

- US SWAPS: $200M 5Y payer around 2.2974-2.29232%; $301.4K 4/5/10Y fly

- TSYS 1PM ET: (Early close) 2Y 1.891%, 3Y 2.008%, 5Y 2.252%, 7Y 2.396%, 10Y

2.486%, 30Y 2.838%