Tsys drifting around mildly lower...>

US TSYS SUMMARY: Tsys drifting around mildly lower levels in the second half,

holding a narrow range on light volume (TYU<660k). 

- General opinion reflected by market is little new ground covered. was brief

period of selling down to (mild) session lows then steady (but mild) buying

around time Powell mentioned protectionist trade policies not good.

- Back to summer trade (not much expected from House FSC testimony tomorrow)

Bullard Friday ahead Saturday blackout.

- US$ index firmer: DXY +0.475 to 94.986; US$/Yen higher +.58 to 112.87

(112.93H/112.23L); equities stronger (emini +16.25, 2812.75); gold hammered (XAU

-13.771, 1227.23); West Texas crude near steady after Mon's sell-off (WTI +0.18,

68.23).

- Participants stayed close to the sidelines, traders disappointed, were keen to

hear more on curve flattening and trade war implications; too many unknowns for

them to game out. Two-way flow on range, some deal-tied hedging across curve

(MUFG 6-parter covers 3Y-20Y). Tsy cash/ylds: 2Y 99-25 (2.611%), 5Y 99-12

(2.759%), 10Y 100-04 (2.858%), 30Y 103-02.5 (2.968%)