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Tsy futures are trading mildly.........>

US TSY FLOWS
US TSY FLOWS: Tsy futures are trading mildly weaker, near recent overnight lows
on light volume, generally quiet ahead July NFP (+181k est). Rates opened mildly
higher O/N, adding to Thu's long-end lead rally, reversing course into London
trade, following Bunds after upbeat German factory orders. Equities firmer
(emini +3.75, 2475.50), gold firmer (+0.45, 1268.98), oil softer (-0.30, 48.73).
- Asia, extended Thu's long end lead rally in early trade, mild risk-off support
after news broke US special prosecutor Mueller had impaneled a grand jury to
investigate allegations of alleged Russian interference in the US election. Flow
included end users selling 7s, regional banks sold 10s and 30s, foreign central
bank selling in the long end.
- London, Tsys followed Bunds lower on upbeat German factory orders. Light
two-way positioning heading into the July employment data.
- Overnight repo saw mild bid in 2s, 3s and 10s.
- Swaps, steady to mildly wider in the belly, little substantive flow ahead
weekend.
- Eurodollars, steady to mildly weaker out the strip on light volume.

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