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Tsy futures trading weaker, just off...>

US TSY FLOWS
US TSY FLOWS: Tsy futures trading weaker, just off recent lows, long end
underperforming, moderate volume so far (TYZ>285K). Equities firmer (emini
+3.75, 2567.25), gold weaker (-3.51 1278.73), oil firmer (WTI +0.35, 52.25).
- Asia, quiet start w/Tsys trading steady to mildly bid, holding narrow range
into London cross, sources reported real$ selling in long end.
- London, Tsys trailed EGBs lower on various stronger European PMIs. Sources
reported bank buying 3s, fast$ two-way in 10s, real$ buying in 5s and long end,
sellers off-the-run 5s.
- Overnight repo has 2s and old 2s and 3 running tight.
- Swaps, spds running mixed 2s and 10s mildly bid, 2s outperforming. Light flow
with some deal-tied hedging.
- Eurodollar futures trading weaker, reversing Mon's gains, long end of strip
underperforming. Modest volume, some option related hedging. LIBOR gains w/3
Month +0.0032 to 1.3706% (+0.0059/wk), 6 Month +0.0036 to 1.5644% (+0.0095/wk).

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