*** Tsys futures currently trading.....>

US TSY FLOWS: *** Tsys futures currently trading modestly weaker, off overnight

lows on moderate volume (TYH>280k); yld curves flatter 2s10s -0.128, 56.254;

5s30s -1.303, 60.654. US$ rebounding, equities firmer (emini +1.5, 2670.5), gold

firner (XAU +2.25, 1257.85), oil weaker (WTI -.37, 56.23). Little react to BoE

steady policy annc, waiting on ECB annc.

- Asia, Tsys drifted lower after steady/mildly higher open, sources reported

fast$ and bank portfolio sales in intermediates-long end after strong Australian

jobs, FX acct selling on bounce in US$ vs. Yen (112.634 last).

- London, two-way flow w/better sellers on net: mild follow-through selling in

early London hours, steady climb off lows in hours leading up to BoE policy

annc. Prop and fast$ buying 5s and 10s, bank buying in 30s.

- Swaps, spds running steady/mixed, spd curve steeper, decent payer in 2s has

spd off earlier narrows, also 5s7s10s fly and 5s10s flattener earlier. More

recent flow includes small 2s5s flattener after 3s5s steepener.

- Eurodollar futures weaker, near middle O/N range. EDZ7 steady ahead Fri

expiry, EDH8 lower post 3M LIBOR +0.0119 to 1.6004% (+0.0516/wk).