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Trading mildly higher, off..........>

US TSYS SUMMARY
US TSYS SUMMARY: Trading mildly higher, off top-end narrow overnight range,
curves continue to scale back recent steepening; moderate futures volume
(TYU<275k). Tsys trailing EGBs, early bid on back of soft Australian CPI data.
Headline watching ahead ahead of US/EU trade talks w/EU Pres Juncker in DC
today. Otherwise, another light data day w/Jun new home sales (669k est),
building permits; $36B 5Y note and $18B 2Y FRN note auctions.
- US$ index little weaker DXY -0.127 to 94.486; US$/Yen -.17 to 111.03
(111.38H/111.02L); equities weaker (emini -5.75, 2815.25); gold stronger (XAU
+8.0, 1232.53); West Texas crude soft (WTI -0.09, 68.43).
- Asia/London traded w/mild risk-off tone, bank portfolio buying short end,
two-way flowin intermediates, better buying into London cross-over, some light
deal-tied hedging, pre-auction selling -- fairly typical low conviction summer
trade ahead Thu/Fri data. Eurodlr futures steady/mildly higher, pared mild gains
after 3M LIBOR set +0.0020 to 2.3368% (-0.0047/wk). Reds inversion vs.
Greens-Blues largely steady. Tsy cash/ylds: 2Y 99-30.5 (2.645%), 5Y 99-03.75
(2.816%), 10Y 99-13.5 (2.941%), 30Y 101-05 (3.065%).

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