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Tsys see-sawed to modestly higher...>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys see-sawed to modestly higher levels by midday Friday,
extending top-end session range on light futures (TYU<635k), quiet summer trade
and sidelined accts into the semi-annual MonPol report release (Fed chair
testimony Tue, July 17). No new ground broken in report: policy remains
accommodative, further gradual hikes, yield curve "shifted up" while flattening
continues/nears inversion. Mixed messages from US Pres Trump: US/UK trade deal
at risk on soft-BREXIT (later denied), relationship w/PM May "very, very
strong". 
- US$ index reversed early strength: DXY -0.018 to 94.809; US$/Yen see-sawed
lower -.12 to 112.43 (112.80H/112.34L); equities mildly higher (emini +5.0,
2803.5); gold weaker (XAU -5.31 1242.07); West Texas crude bounced (WTI +.65,
70.98).
- Light late wk flow included two-way/position squaring in fronts/intermediates,
option-tied selling, fund selling 30s; swap flys include 2s3s10s, 2s4s10s and
5s7s10s (rec belly). Tsy cash/ylds: 2Y 99-26.75 (2.582%), 5Y 99-16.25 (2.730%),
10Y 100-11 (2.833%), 30Y 103-22 (2.938%).

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