Tsy futures trading mildly higher,...>

US TSY FUTURES: Tsy futures trading mildly higher, top end narrow overnight

range/making new highs w/short Sterling following BoE rate decision to leave

rates unchanged. Equities weaker (emini -1.75, 2471.75), gold weaker (-1.17,

1265.45), oil weaker (WTI -0.07, 49.52). 

- Asia, quiet open on low summer volume, Tsys opened softer but rebounded on

decent buying in TYU from 126-03.5 to -04 followed by Block buy of 6k at

126-05.5. China Caixin services PMI was in line with expectations at 51.5.

Japanese MOF data, net buyers of foreign bonds of Y106.70 in latest week.

- London, knock on selling in the intermediates following European supply

(French and Spanish issued). Light 2-way position squaring/2-way cash flow kept

rates near steady heading into the BoE annc.

- Swaps, spds steady/mixed, spd curve flatter w/short end wider/near late

overnight highs. Sources reported spec acct paying in short end, fast$ and bank

portfolio paying in belly.

- Eurodollars, steady/mixed, short end softer, -10k EDM'18 at 98.40.; 3M LIBOR

-0.0011 to 1.3117% (+0.0011/wk).