Tsys higher by the bell/off early...>

US TSYS SUMMARY: Tsys higher by the bell/off early session highs even as US$

climbs to late May highs (DXY +1.176, 94.720, 94.800H; US$/Yen +0.26, 110.60);

equities off highs (emini +5.0, 2784.0). Curves resume flattening/new 11-year

lows -- but don't expect to potential inversion/recession signal to slow down

policy tightening anytime soon analysts widely saying ("same way" the Fed

"dismissed inflation expectations declines for two-years" one expert posited).

Gold firmer (XAU +3.76, 1303.08; West Texas crude see-sawed higher (WTI +0.3 to

66.94). 

- Relatively quiet session, Tsys ignored weaker EGBs ahead of the ECB annc, ylds

directional w/lower US$/Yen after pair gapped to 110.85 post FOMC Wed -- nearing

lvl in late Thu trade. No react to data, Fed out of media blackout at midnight;

BoJ policy decision overnight.

- Combination of stop-out/sporadic short-covering on session, particularly

during ECB annc. Decent technical buying on 10YY decline to 9.3 after breach of

3.0 post FOMC Wed. Tsy cash/ylds: 2Y 99-27.5 (2.570%), 5Y 99-22.25 (2.814%), 10Y

99-12.5 (2.942%), 30Y 101-06 (3.063%)