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Concerted/broad-based risk-off......>

US TSYS SUMMARY
US TSYS SUMMARY: Concerted/broad-based risk-off this morning w/ Italy, Turkey,
China trade, EM stress, NKorea summit delay talk, weak German/UK data all
contributing to theme; long end-lead Tsy rally, curves (mostly) flatter, US$
climbing. Data on tap includes home sales, $36B 5Y auction followed by May FOMC
minutes at 1300ET.
- The USD index stronger (DXY +0.382, 93.991) but US$ vs. Yen -1.19, 109.70 on
improved Japan outlook; stocks recede (emini -16.5, 2709.5); West Texas crude
softer (WTI -0.38, 71.82); gold firm (XAU +5.32, 1296.47).
- Asia, Tsys kicked off w/modest bid, sideways trade in lead-up to London
crossover, Tsys ylds fell w/US$/Yen, two-way cash flows, prop and real$ buying
10s, bank portfolio and real$ buying 30s carried over to London session, program
buying belly, tactical steepener unwinds by fast$ in 2s and 5s vs. 10s, central
bank selling 5s. Swaps, mildly mixed amid two-way in front end, bank receiving
2s vs. paying at 2.77%, 2s5s flatteners, 5s6s7s fly paying belly.
- Tsy cash/ylds: 2Y 99-28.2 (2.556%), 5Y 99-17.5 (2.847%), 10Y 98-26.5 (3.010%),
30Y 98-07.5 (3.163%)

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