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Rates holding lower levels in.......>

US TSYS SUMMARY
US TSYS SUMMARY: Rates holding lower levels in second half, well off early
session lows amid modest two-way on net, better short cover/profit taking after
May NFP came out stronger than expected (+223k vs. +194k est), AHE +.3%,
unemploy rate -.1 to 3.8% -- lowest in 18 years. Debate over whether Pres Trump
telegraphed positive report in tweet prior to formal release. Otherwise, rates
were under pressure on back of Italian political risks cooling (though Turkey
may be heating up again).
- USD index firmer (DXY +.193 94.171; US$ vs. Yen +0.68, 109.50); stocks
stronger (emini +28.0, 2733.5); gold weaker (XAU -3.64, 1294.87); West Texas
crude weaker (WTI -1.07 to 65.97).
- Implied vol decline as range set early, quiet trade ahead weekend, Fed media
blackout begins at midnight and goes through Jun 13, day after next rate annc.
Eurodlr futures under pressure, re-pricing increased rate hike
chances after June FOMC (after Tue's sharp drop), total of four hikes in 2018
viewed more positively. Tsy cash/ylds: 2Y 100-01.7 (2.468%), 5Y 100-02 (2.735%),
10Y 99-28 (2.888%), 30Y 101-22.5 (3.037%).

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