Quiet start to wk w/Tsys trading....>

US TSYS SUMMARY: Quiet start to wk w/Tsys trading mildly weaker across the

board, near middle narrow overnight range on very light volume (TYM<180k) w/much

of Asia out for holiday (China closed Mon, Tue for Labor Day holiday, Japanese

mkts closed Mon, Thu and Fri for public holidays), European mkts closed Tue for

May-day holiday. Tsy 10Y yld 2.968%. 

- US$ index stronger (DXY +.303, 91.844; US$/Yen 109.38); equities firmer (emini

+8.25, 2679.75); gold weaker (XAU -10.14, 1313.22); West Texas crude weaker (WTI

-0.71, 67.39). Data on tap includes personal income (0.4% exp), US$ PCE (0.4%),

and Apr MNI Chicago PMI (57.8 exp); FOMC policy annc on Wed, Apr NFP on Fri.

- London, light two-way flow, some fx-acct selling on US$ bounce, large FVM

Block buy earlier (+21k FVM 113-14; lrge FVM buys vs. 10s and Ultras last wk).

- Swaps, spds running mostly wider, spd curve flatter/narrow range, light

volume, 3Y switches, 4Y payer 2.8879%, 3s4s5s fly, receiving belly.

- Eurodollar futures, Front end under pressure w/3M LIBOR setting +0.0049 to

2.3629% (-0.0072 last wk), recent sale -15k EDM8 at 97.63 (-0.010), balance of

strip mildly lower.