Tsys holding weaker levels/off......>

US TSYS SUMMARY: Tsys holding weaker levels/off low end of range in late trade.

Decent futures volume (TYU>1.17M) on relative narrow range.

- Tsy ylds in-line w/strong US$ index, DXY +0.434 to 94.637; US$/Yen near highs,

+.22 to 111.22 (111.23H/110.59L); equities mildly lower (emini -1.5, 2839.75);

gold softer (XAU -6.61, 1225.01); West Texas crude mildly higher (WTI +0.39,

69.69).

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

weighed on EUR. Curves mildly flatter still however. Sources report cash bid for

5s, pre-auction short sets, two-way option flows trade

volume remains rather muted, however.

- 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%).

- Accts 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%).