Tsys trade firmer, just off.........>

US TSYS SUMMARY: Tsys trade firmer, just off overnight highs on narrow range,

moderate volume (TYM<320k). Focus on upcoming Q1 GDP (2.0% est) and ECI (0.7%

est), especially after much weaker than exp UK prelim Q1 GDP data +0.1% Q/Q

(+1.2 Y/Y) earlier, weighs on May BoE rate hike exp's/Gilts rallying.

- US$ index higher (DXY +.262, 91.823; US$/Yen 109.31 vs. 109.49 overnight

high); equities weaker (emini -3.25, 2668.25); gold little firmer (XAU +2.65,

1319.56); West Texas crude little weaker (WTI -0.12, 68.07).

- Asia, Tsy steady open to late Thu lvls, inched higher into London crossover.

Note, China markets closed Mon, Tue for Labor Day holiday while Japanese mkts

closed Mon, Thu and Fri for public holidays.

- London, Tsys followed Gilts higher, eye on US GDP for signs of follow through,

weaker data to temper forward US rate hike exp. Better bid/short covering as

flow turns two-way.

- Swaps, spds tighter real$ paying on curve, bank and insurance portfolio

receiving long end. Eurodollar futures, mildly higher 3M LIBOR -0.0007 to

2.3580% (-0.0072/wk).