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

US TSYS SUMMARY
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%).

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