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New wk kicked off w/risk-on tone,...>

US TSYS SUMMARY
US TSYS SUMMARY: New wk kicked off w/risk-on tone, rates hold lower after
midday, curves flatter/off lows. Tsys followed EGBs lower overnight on tighter
core and sovereign spds (voter support for Italian "League" has grown since
Fri), strong Australian retail sales ahead RBA meet early Tue. Back to watching
headlines w/prosaic U.S. data releases on wk, Fed in blackout ahead Jun 13 FOMC
annc.
- USD index weaker/off lows (DXY -.102, 94.054; US$ vs. Yen +0.16, 109.70);
stocks up (emini +11.5, 2744.0); gold off (XAU -.4, 1293.33); West Texas crude
off (WTI -0.97 to 64.84).
- Two-way trade on better selling on modest first half volume, ctwo-way curve
trade, corp issuance hedging. Tsy Correlation to Bunds/Gilts in reaction to
Italian ylds continued through day. Tsys extended session lows midday as
Italy/Bund forged lower. Large Block sale -10k Eurdlr Red Sep19 1Y bundle
(EDU9-EDM0), -0.040 after -16,400 Red Dec'19, 97.03 (-.045), post time bid.
- Tsy cash/ylds: 2Y 99-31.5 (2.504%), 5Y 99-27.25 (2.780%), 10Y 99-15.5
(2.933%), 30Y 100-28.5 (3.079%).

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