Tsys are up slightly Tuesday,.......>

US TSYS SUMMARY: Tsys are up slightly Tuesday, with mercifully little in the way

of headline risk so far compared with recent sessions.

- Not much in way of impactful newsflow early. Saw a bit of softness in Tsys on

Xinhua headlies that China will relax car purchase limits, boosting global

automakers' share prices.

- Once again, China spokesman disavowed knowledge of US high-level phone calls.

- Sep 10-Yr futures (TY) up 7/32 at 131-0 (L: 130-27 / H: 131-04).

- Long end outperforming: 2-Yr yield is down 0.9bps at 1.5305%, 5-Yr is down

1.3bps at 1.4039%, 10-Yr is down 2.4bps at 1.5114%, and 30-Yr is down 4.1bps at

1.9942%.

- Red Eurodollar futures outperforming, up 2.5 ticks.

- Moderate, perhaps even cautious risk-on overall; equity futures up ~0.1%.

- 1300ET sees $40B 2Y note auction.

- Main data highlight is Conference Board Cons. Confidence at 1000ET; Richmond

Fed manuf. index at same time.