Rate futures trading modestly.......>

US TSYS SUMMARY: Rate futures trading modestly higher, at/near overnight highs

while 10Y yld back below 3.0% to 2.973% at moment. BoE leaves rate steady after

7-2 vote, lowers inflation profile; short Sterling spiked after annc but has

pared gains, Aug hike chances slip to 55% from 66%. Back to U.S., focus on

upcoming CPI (0.3% est), weekly claims (215k est) and final leg of week's Tsy

supply w/$17B 30Y bond.

- US$ index bouncing off recent lows (DXY -.104, 92.935 vs. 92.802L; US$/Yen

109.667); equities little firmer (emini +3.25, 2699.25) as West Texas crude

firmer/off highs (WTI +0.39, 71.53, 71.89H); gold stronger (XAU +4.26, 1316.97).

- Asia, steady open followed by mild bid on sideways trade into London open.

Steady open in early London hours, bout of selling midmorning pushed bonds lower

briefly, rebounded soon after and extended gains post BoE. Two-way flow on net,

fast$ and props in 5s and 10s, light deal-tied flow in the mix.

- Swaps, spds running mixed on light flow, sources report payers in 3s and 10s.

- Eurodollar futures, mildly higher, buyer 12k EDU9/EDZ9/EDH0 fly, 0.035

- Tsy ylds: 2Y 2.518%, 3Y 2.669%, 5Y 2.821%, 7Y 2.937%, 10Y 2.973%, 30Y 3.145%