Tsys have been under mild...........>

US TSYS SUMMARY: Tsys have been under mild pressure overnight, with an odd

European morning (EUREX outage stymied EGB trading) culminating in a sharp drop

across asset classes on no headline news. Data and Fed minutes eyed later.

- The 2-Yr yield is up 0.4bps at 0.1525%, 5-Yr is up 1.1bps at 0.2989%, 10-Yr is

up 3bps at 0.6857%, and 30-Yr is up 3.9bps at 1.4497%.

- Sep 10-Yr futures (TY) down 6.5/32 at 138-31 (L: 138-30.5 / H: 139-05.5)

- OK volumes in TYs, ~260k traded thus far. Sep EDs very light at ~10k.

- Data in focus this morning: Jun ADP Employment at 0815ET (+2.9mln exp, vs

-2.76mln prior), and Jun ISM Manufacturing at 1000ET (49.7 exp, 43.1 prior).

Construction spending for May (also 1000ET) also getting attention.

- Minutes from June FOMC out at 1400ET; most will be watching for discussion of

yield curve control/forward guidance. We'll put out a short preview later.

- More bill sales: 105-/154-Day for combined $55bln at 1130ET. And NYFed buying

$3.625B in Tsys.