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*** Tsys hammered after latest......>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys hammered after latest Block sale ahead the 7Y note
auction, -6.000 USH, 152-20, sold through -23 bid at time of post (1249:32),
currently trading 152-17 (-13/32). Tsys were holding weaker levels into midday,
near middle of narrow range on light year-end volume (TYH<500k). Curves mixed
w/short end steepening off recent 10+ year lows. Latest curve update:
* 2s10s +1.185, 52.747 (53.329H/51.485L)
* 2s30s +0.894, 85.998 (87.470H/84.687L)
* 5s30s -1.909, 53.192 (55.632H/52.342L)
- Ongoing quiet, listless trade heading into final leg of wk's Tsy supply, $28B
7Y note auction, light pre-auction short setting; no corporate deal-tied flow 
- Following Bunds and Gilts, Tsy futures opened near overnight lows
- Mild buying post weekly claims (steady at 245k), little to no react to
unexpected rise in MNI Chicago Business barometer (67.6 vs. est. 64.0). Mixed
curve flow on light volume, steepener unwinds in 2s vs. 10s and 30s, 5s30s
flatteners early. Modest month/quarter/yr end buying earlier. Eurodlr futures
trading mostly weaker, light buying in short end as LIBOR climb slows.

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