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Tsys continues to trade weaker post....>

US TSY FLOWS
US TSY FLOWS: Tsys continues to trade weaker post CPI, little off recent lows,
yld curves steady/mixed (5s30s -.959 at 37.376L). Rate sales picked up post
data, further spurred by bid for equities (SPX 2677.0H).
- UK's PM May leadership challenge in focus today -- if 80 MPs vote against her,
argument that's sufficient opposition for her to resign anyway, despite the fact
that she may have passed the no confidence vote itself. Earliest results at
1600ET.
- Overnight and early NY flow includes two-way in shorts to intermediates after
better selling during early London hors. Little deal-tied flow but some
pre-auction short sets ahead today's $24B 10Y note auction (9128285M8).
- Recent misc short covering, fast$ and prop acct buying after latest headline
on US rejecting EU trade reform proposal. Otherwise fairly quiet trade w/next
data event Friday w/Retail Sales (0.8% prior, 0.2% est).
Tsy cash/ylds: 2Y 99-30.5 (2.772%), 5Y 100-16 (2.765%), 10Y 101-28.5 (2.902%),
30Y 104-15 (3.143%).

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