Tsys hold weaker levels/near........>

US TSYS SUMMARY: Tsys hold weaker levels/near session lows by the bell. Decent

futures volume (TYU>1.22M) on relative narrow range.

- Tsy ylds in-line w/strong US$ index, DXY +0.533 to 94.766; US$/Yen near highs,

+.21 to 111.28(111.25H/110.59L); equities softer (emini -4.25, 2837.0); gold

weak (XAU -7.78, 1223.83); West Texas crude mildly higher (WTI +0.3, 69.6).

- Futures extended session lows earlier as US$ bounced after ECB/Draghi presser

weighed on EUR. Yld curves continue to unwind early wk steepening. Sources

reported cash bid for 5s, pre-auction short sets, two-way option and hedging

flow, August Tsy options expire Fri. Swap spds rebound finish mildly tighter on

light hedge unwinds

- Tsys held narrow range near session lows after $30B 7Y auction comes in right

on the screws -- awarded 2.930% rate vs. 2.930% WI (previous $30B 7Y awarded

2.809%).

- Participants hit sidelines ahead Fri's headline GDP, JPM cut forecast to 3.9%

from 4.4% after morning data. Tsy cash/ylds: 2Y 99-28.5 (2.677%), 5Y 99-16.5

(2.853%), 10Y 99-06 (2.969%), 30Y 100-19.5 (3.093%).