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Muted volume ahead an expected......>

US TSYS SUMMARY
US TSYS SUMMARY: Muted volume ahead an expected annc re: Iran nuclear accord by
Pres Trump at 1400ET, likely contributed to inordinate influence by the US$ as
it climbed to 4-month highs early in the session, many accts sidelined on an
otherwise light data day.
- Equities weaker (emini -5.5, 2664.5); gold off lows (XAU -0.47, 13163.67).
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 2.814%, 7Y 2.930%, 10Y 2.978%, 30Y 3.137%

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