Real vol evaporated on narrow.......>

US TSYS SUMMARY: Real vol evaporated on narrow range trade in rates, brief

(likely) lull in trade and geopolitical risk added to two-way flow on narrow

range, US$ regained footing. Making Summer Trade Great Again (quiet)

- US$ index higher (DXY +.408 to 94.697; US$/Yen +0.45 to 110.11); equities

see-sawed higher after Mon's steep sell-off (emini +9.0, 2731.25); gold weaker

(XAU -7.09, 1258.52); West Texas crude >70 first time in 4 wks after headlines

US presses allies to cut Iran imports to zero by Nov 4 (WTI +2.34, 70.42 -- ).

- Plain vanilla early summer session, light futures volume (TYU<1M), narrow

ranges on two-way trade, limited deal-tied hedging; $34B 2Y auction awarded a

2.538% rate (2.590% previous) w/bid/cover 2.73. US$ rebound spurred sporadic

sell pressure as did tepid rebound in equities (weaker EU banks weighed on DAX)

- Limited react on Fed speak Dallas Fed Pres Kaplan (SEES U.S. GDP GROWTH OF

2.75% PERCENT THIS YEAR); Atlanta Fed Pres Bostic (TRADE CAUSING UNCERTAINTY,

TOO SOON TO PICK A WINNER).

- Tsy cash/ylds: 2Y 99-29.75 (2.533%), 5Y 100-00.25 (2.746%), 10Y 99-30.5

(2.878%), 30Y 101-29 (3.027%).