Tsy futures trading weaker, low end....>

US TSY FLOWS: Tsy futures trading weaker, low end overnight range on modest

volume, Sep/Dec roll largely done, quiet start to new month and calm ahead Aug

NFP release this morning. Sources note Aug payroll data historically tends to

fall short of est's followed upward revisions in following month.

Equities firmer (emini +5.75, 2475.75), gold softer (-2.17, 1318.23), oil weaker

(WTI -.31, 46.91).

- Asia, traded mildly weaker/narrow range through Asia hours, slight giveback

late Thu mnth-end buying. Relative value accts, Asian banks sold 5s and 10s.

- London, brief bid in early London hours followed by steady selling to current

lows. Sources reported cross-current flow from bank portfolios in intermediates.

- Swaps, spds running modestly wider, spd curve flatter. London hours, 10:00BST

there appeared to be a USD200mln receiver of USD 3Y at 1.62%, but could well be

a dealer hedge trade in reaction to a 2Y1Y receiver in 500mln+ just 3mins

before.

- Eurodollars, mildly lower across the strip, LIBOR slips 1M -0.0011 to 1.2306%

(-0.0050/wk), 3M -0.0017 to 1.3161% (-0.0017/wk).