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Treasury off session highs by the...>

US TSYS SUMMARY
US TSYS SUMMARY: Treasury off session highs by the bell, mirroring US$/Yen after
the pair extended session lows (110.61, -.16 vs. 111.07 pre-open high). Decent
futures volume -- inflated by June/Sep roll activity.
- The USD index higher (DXY +0.148, 93.617) on back of EM concerns; stocks
weaker (emini -3.0, 2715.75); West Texas crude weaker (WTI -0.19, 71.30); gold
firmer (XAU +3.23, 1293.98). Limited data on day (GDP Now forecasts), little
react to multiple Fed speakers; 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 surged
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 99-21.25 (2.549%), 5Y 99-11 (2.892%), 10Y 98-11 (3.067%),
30Y 98-10.5 (3.211%)

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