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US Treasuries prices hovered just...>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries prices hovered just above day's lows after
morning ebb on various causes: lower-than-expected 260K initial weekly jobless
claims and firm 1.2% August factory new orders. Tsys hurt too amid SF Fed
Williams' caution that US real estate and bond prices are near all-time highs
amid low US rates; Phil Fed Harker said US is at "maximum employment" tho some
jobs don't pay "living wage" (Bloomberg). Tsys saw better short end selling; US
Eurodlr futures had selling too of 12,000 in Dec'17 at 98.495 prior to 10:31am
ET. Eurodlr options sale of 35,000 Dec 86 calls at 1.0 vs 98.49/0.30; Dec hike
chances up to 71.7%.
- Tsys pressured by higher US stocks and by potential compromise on
Spain/Catalan secession as Catalan leaders disagree. Tsys selling in cash 7Y-10Y
notes by hedge funds, real money, foreign central banks. Some could sell/short
to hedge vs potential Fri 8:30 am ET strong Sept. jobs report. 
- TIPS outperformed nominal Tsys; MBS tighten. CDX index tightens. US corporate
bond issuance is fairly moderate in size. Due to Mon bond holiday, Tsy has $24B
3Y auction Oct 11 Wed AND $20B 10Y reopen same day; $12B 30Y Reopen Oct. 12th.

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