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Treasury making new session highs...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasury making new session highs into midday as US$/Yen
extends session lows (110.64, -.13 vs. 111.07 pre-hopen high). Decent futures
volume by midday, inflated by June/Sep roll activity.
- The USD index is higher (DXY +0.118, 93.587); equities weaker (emini -3.5,
2715.25); West Texas crude weaker (WTI -0.26, 71.23); gold bounced after a weak
morning (XAU +1.65, 1292.39). Limited data today (GDP Now forecasts), multiple
Fed speakers round out the wk; many sidelined ahead May FOMC minutes next Wed.
- Swaps spds tighter, spd curve unwinding portion wk's flattening, bank
portfolio paying 3s earlier; modest payers in 1s, 4s and 5s fading the two day
move, while some modest spd curve steepeners (2s5s and 4s7s). No new corp
issuance after >$35B priced on week.
- Curves mixed w/short end flatter. Tsys also gained as German bunds shot higher
earlier. Italy's 10yr yield climbed over 30 basis points through wk largely
driven by 5-star/Lega's coalition proposals.
- Tsy cash/ylds: 2Y 99-22 (2.540%), 5Y 99-11 (2.888%), 10Y 98-11.5 (3.065%), 30Y
98-12.5 (3.208%)

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