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Choppy day for crude, emerging......>

US TSYS SUMMARY
US TSYS SUMMARY: Choppy day for crude, emerging mkts on US$ strength to 4+-month
highs, Tsys rebound off lows following US Pres Trump's annc US will exit Iran
Nuclear accord and will re-impose sanctions on Iran. Muted trade/sidelined accts
ahead the US/Iran annc. Fed Chair Powell in Zurich did not talk policy.
- Equities weaker (emini -4.0, 2666.0); gold bounce (XAU +2.09, 1316.23 vs
1306.05L). West Texas crude CRUSHED on earlier CNN headlines that US Pres "Trump
to annc new sanctions against Iran but will NOT withdraw from deal." WTI fell to
67.63 low. Eq's reacted favorably, emini climbed to 2674.25. Cross-current
headlines denials re: Iran accord followed.
- Tsys made new session lows as US$ index DXY tapped 4+ month high 93.280, 10YY
taps 2.9854H vs. 3.03% high from Apr 25. Flow included FX-tied selling, prop and
real$ sales in 10s and 30s, some pre-auction short setting in 3s ahead today's
$31B note auction, fast$ buying lows, swap-tied rate receiving 2s-5s, technical
selling in 10s. Heavier Eurodollar option flow targeting Mar19 rate hike (+125k
EDH 68 puts, 2.0).
- Tsy ylds: 2Y 2.513%, 3Y 2.650%, 5Y 2.813%, 7Y 2.927%, 10Y 2.972%, 30Y 3.127%

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