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*** Very quiet week opener, Tsy.....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Very quiet week opener, Tsy futures see-sawed to mildly
higher levels after slipping to near overnight lows after the open, thin markets
buffeted by deal-tied hedging and fx-acct sales on carry-over bid for USD.
- Sources report light two-way flow on net after large block sale of 14k TYU at
126-00 sent futures tumbling briefly. Mild prop, bank portfolio buying in short
end. FX-tied selling has evaporated.
- St Louis Fed Bullard w/dovish tone, expressed concern recent weak inflation
indicators could be sign it won't return to the Fed's 2% target anytime soon.
- Mn Fed Kashkari : biggest US banks are still too big to fail.
- Corporate debt issuance returns, hedging adds to earlier weakness, swap spds
ratcheted tighter/spd curve holding flatter. Some desks fading spd narrowing in
the belly, outright and vs. the short end.
- Rate hike probability for Dec 13 FOMC holds around 40% (MNI PINCH).
- Option vol started off with mild bid but has slipped back to steady/lower
w/underlying off lows to steady/mixed.

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