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Weaker, near late session lows as......>

US TSY FLOWS
US TSY FLOWS: Weaker, near late session lows as mkt fades current Mideast
rhetoric/risk-off tone, unwinding about a third of Fri's long end lead rally.
Unexpectedly large (>$25B) corporate issuance added to sell pressure; late
headlines US preparing to pull out of Iraq may have added slightly to late rate
sale. Tsy yld curves reversed early flattening, running steeper. Gold remains
strong (+14.0), West Texas Crude steady at 63.04.
- Rates traded lower/extends new session lows earlier as geo-pol/safe-haven bid
support evaporates ahead midday. Taking heated US/Iran rhetoric in stride, some
desks anticipated the reversal as long as there is no immediate and/or "visible"
retaliation by Iran (cyber-attacks not deemed a high threat) for US killing
Iran's Soleiman. Volume strong as yld curves moving off earlier flatter levels. 
- Minimal market react to Reuters headlines below, some additional risk-off
unwinding. Fading Mideast tensions via weaker Tsys likely will be temporary:
"U.S.-LED COALITION TELLS IRAQI MILITARY IT WILL WITHDRAW" RTRS.
- The 2-Yr yield is up 1.6bps at 1.5405%, 5-Yr is up 1.5bps at 1.6042%, 10-Yr is
up 1.6bps at 1.8038%, and 30-Yr is up 3.3bps at 2.2772%.

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