Tsys have traded without clear......>

US TSYS SUMMARY: Tsys have traded without clear direction in European hours

after a sedate Asia-Pac session, edging slightly up overall ahead of CPI data.

- Hong Kong and Argentina concerns (in addition to all the other lingering

geopolitical issues), plus weak German ZEW survey data this morning, have

continued to underpin the US curve alongside other global core FI.

- 30-Yrs outperforming, and now nearing the 2016 low of 2.0882%: 2-Yr yield is

down 1.2bps at 1.5713%, 5-Yr down 0.8bps at 1.4844%, 10-Yr down 1.7bps at

1.6284%, and 30-Yr down 3.1bps at 2.1013%.

- Sep 10-Yr futures (TY) steady at at 130-12 (L: 130-07 / H: 130-17).

- Equities remain under pressure, S&P futures off 0.2%; dollar mixed.

- July CPI highlights at 0830ET: core expected to rise 0.2% M/M (0.3% prev.),

headline up 0.3% (0.1% prev.).

- BBG sources piece out earlier on Volcker Rule changes to ease banks` trading

rules had little immediate market impact.

- No FedSpeak scheduled.