US Treasuries open NY weaker,.......>

US TSYS SUMMARY: US Treasuries open NY weaker, 2/30Y curve mildly steeper but

5/30Y flatter. Mkt awaits 1) Friday 8:30am ET US Nov. nonfarm payroll employment

report and 2) word on US debt limit (temporary lifting expires Friday); Congress

legislators were to talk debt limit today. Tsy 11am ET unveils next week's

3/10/30Y auctions. 

- TOKYO: Tsys extended weak open, bottomed out 8pm ET Wed, then range into

London. Mkt saw modest two-way in 2s and 5s, FX-tied selling, 5s30s curve

flatteners, regional bank buying cash 10s and 30s. 

- London: Tsys improved off a range starting 3am ET, then peaked 5am ET, since 

remained weaker in line with soft core EGBs (such are pressured by French and

Spanish auctions). Mkt saw carryover 5/30Y curve flatteners, and 2/10Y, 2/30Y

flatteners too. Asian real$ bought short end, 2way in 10s by props, fast- and

real$, better selling by fast$, real$ and central bank selling in long end. 

- US SWAPS: 10Y rate payer earlier, then receiving at 2.36205% 10Y; 2Ys 2-way. 

- OVERNIGHT REPO: Tsy 10Y squeezes much tighter still, now at -3.55%; 3Y, 30Y

and old 5Ys have a much milder bid.