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Tsys hold lower levels by the.......>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys hold lower levels by the bell, off lows after extending
past late O/N lows as US$/Yen tops 110.40. Generally quiet, little react to data
(weekly claims +9k to 227k), 10YY climbed to 2.844% after StL Fed Pres Bullard
said productivity growth "could surprise". Lull in month-end buying that helped
push Tsy ylds lower Wed.
- US$ index rebounds late (DXY +0.072 to 95.362; US$/Yen new session highs
(110.63); equities surged (emini +18.0, 2723.0); gold weaker (XAU -4.94,
1247.35); West Texas crude continues to gain (WTI .52, 73.28 after tapping
74.03, new year high/revisits 2014 high).
- Tsys receded w/bounce in US$/Yen, program and fast$ sales in belly,
pre-auction short sets ahead $30B 7Y auction, light HG corp flow), option-tied
hedging, two-way positioning ahead Fri's PCE data -- accts eying sidelines ahead
next wk's 4th of July holiday. Swap spds still wider but off earlier highs, spd
curve off flats amid decent steepener flow, rate paying in 5s, 6s and 10s. Tsy
cash/ylds: 2Y 99-30.62 (2.520%), 5Y 99-17 (2.724%), 10Y 100-08 (2.844%), 30Y
102-29.5 (2.976%).

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