Tsy futures are trading marginally.....>

US TSY FLOWS: Tsy futures are trading marginally mixed, off overnight lows, long

end outperforming on moderate volume (TYU leads w/260k), Tsys underperform

German Bunds amid late month end bid. Ex Fed Chair Greenspan said US rates

'unsustainably low", a corrective rate rise could happen "fast" if it happens,

according to Bloomberg. Equities firmer (emini +5.0, 2473.0), gold weaker

(-2.68, 1266.765), oil softer (WTI -0.21, 49.96 after topping 50.35 O/N).

- Asia, markets digested firmer China PMI; RBA was deemed dovish. Tsys saw

credit tied selling in 5s, real$ bought intermediates.

- London, Tsys held narrow range after Asia close, two-way in the intermediates,

bank portfolio selling 5s and 10s, mild buying in belly to long end by HFs and

real$; MBS buying.

- Swaps, spds running mixed, wings mildly wider. Sources reported bank portfolio

paying in the intermediates vs. fast$ receiving.

- Eurodollars, trading softer, short and long end of strip mildly outperforming

Reds through Greens (Sep18-Jun20). LIBOR steady again, 3 Month +0.0000 to

1.3106% (+0.0000/wk).