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Treasuries open NY mildly lower,....>

US TSYS SUMMARY
US TSYS SUMMARY: Treasuries open NY mildly lower, flatter after mkt peaked about
6am ET. Mkt awaits 8:30am ET June personal income/spending report which has PCE
deflator that Fed watches. Tsys futures long end outperforming on moderate
volume (TYU leads w/260k). 
- TOKYO: Markets digested firmer China PMI. RBA deemed dovish. Tsys saw credit
tied selling in 5s, real$ bought intermediates. Asian stks gain, Japan's Nikkei
+0.3%; Australia ASX-200 +0.91%. 
- LONDON: Tsys range, 2way flows in intermediates, bk portfolio selling in 5Y,
10Y. Mild buying in belly to long end by hedge funds, real$. Tsys underperform
German Bunds amid late month end bid. MBS saw overnight buying. Ex Fed Chr
Greenspan said US rates 'unsustainably low", cld be "fast" corrective rate rise,
said Bloomberg. US stk futures firm: S&P E-mini +5 to 2473. NYMEX crude oil
-0.27% at $49.90/barrel.
- US SWAPS: O/night bk portfolio paying intermeds; fast$ receiving.
- HIGH-GRADE US CORPS: Tues ADB 5Y/10Y, KFW $1B 4Y, Axis Bk 5Y bmk and NWB 2Y
FRN. FHLBks agency bond issuance slot today. O/N RP: Old Tsy 5Y note tight.

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