Tsy futures trading steady/mixed,......>

US TSY FLOWS: Tsy futures trading steady/mixed, curve a touch steeper w/long end

weaker but off lows, average volume (TYZ appr 290k). Generally quiet start to wk

after Japanese PM Abe managed to preserve 2/3 majority in lower house election,

ongoing tension between Spain/Catalonia. Equities firmer (emini +2.25, 2576.25),

gold weaker (-5.20, 1275.30), oil little firmer (WTI +0.27, 52.11).

- Asia, Tsys opened mildly weaker. Sources reported real$ bought 2s and 10s,

selling in cash 5s and 10Y futures, FX-tied selling as US$ gained vs. Yen.

- London, net mixed flow, futures drew early buying/short covering in long end.

Sources reported real$ sold 10s, bank portfolio two-way vs. credit tied sales in

the belly, Asian central banks and UK asset managers buying in while insurers

bought 30s.

- Swaps, spds steady to mildly wider out the curve, otherwise quiet overnight

action, sources reported prop acct rate receiving in the intermediates, recent

receiving in 6Y at 2.17%.

- Eurodollar, trading steady to mildly mixed, long end a touch weaker, light

volume. 3M LIBOR gained +0.0027 to 1.3674% (+0.0114 last wk).