Tsys broadly weaker on the back.....>

US TSYS SUMMARY: Tsys broadly weaker on the back of renewed US$ strength

earlier, EM's rebounding. Despite mid-East tension, mkts seeing concerted

risk-on for most part, equities stronger, yields higher (10Y taps 3.0117%). US$

index DXY off overnight high of 93.416, currently -.123 to 92.997; equities

stronger (emini +12.0, 2682.25) as West Texas crude vaults to 71.17 high (late

2014 lvls), currently +1.98, 71.05; gold weaker (XAU -2.62, 1311.92).

- Asia, Tsys opened steady to late NY lvls, lower on US$ index jump, traded

sideways on two-way flow into London, prop and bank selling in 10s.

- London, another jump in US$ index to 93.416 spurred further selling in Tsys.

DXY reversal off highs after London open stemmed sell interest w/30Y bonds

moving off lows last half hour. carry-over bank selling in lonf end earlier,

fast and real$ buying in belly, deal-tied flow and pre-auction short setting

ahead $25B 10Y auction.

- Swaps, spds steady/mixed, intermediates tighter. Eurodollar futures, mostly

weaker, heavy short end buying earlier (EDM8>225k).

- Tsy ylds: 2Y 2.522%, 3Y 2.674%, 5Y 2.833%, 7Y 2.950%, 10Y 2.999%, 30Y 3.149%