Week opener felt like random walk......>

US TSY FLOWS: Week opener felt like random walk for Tsys, higher but off highs

by late morning to near middle of narrow range, yld curves recover from early

bull flattening. Decent early futures volume really petered out after London

went home. 

- No data or speaker events Mon, just $45B 13wk and $39B 26wk bill auctions that

both tailed slightly; $38B 2Y note auction Tuesday, multiple Fed speakers on

day. US Data doesn't really pick up until Wed, focu on Fri's Q3 GDP (3.3% est).

- Implied vol rather stable on the inside range day in Tsys, correlation to

equities not a factor as rates pared gains even as equities traded negative

(traders cited Google for weighing on FANG index, Citi downgrade of HSBC weighed

on financial shares.

- Heavy front-end Eurodollar futures buying, EDZ8 +0.030 to 97.26 (>310k), EDH9

+0.025 to 97.09 (>215k); 3M FRA/OIS slipped tighter on the move -2.22, to 33.17.

Some Tsy volume associated w/option hedges vs. soon to expire Nov options.

- Tsy cash/ylds: 2Y 99-23 (2.896%), 5Y 99-07.75 (3.039%), 10Y 97-12 (3.186%),

30Y 92-31 (3.375%).