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Tsys trade lower into midday,.......>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trade lower into midday, blowing through London morning
lows as US$/Yen tops 110.40. Generally quiet, little react to data (weekly
claims +9k to 227k), 10YY climbed to 2.8437% after StL Fed Pres Bullard said
productivity growth "could surprise". Lull in month-end buying that helped push
Tsy ylds lower Wed.
- US$ index mildly weaker (DXY -0.95 to 95.195; US$/Yen recedes to 110.35 after
tapping 110.42); equities little firmer (emini +1.0, 2706.0); gold mildly weaker
(XAU -1.99, 1250.30); West Texas crude continues to gain (WTI .70, 73.45 -- new
year high/revisits 2014 high).
- Tsys recede w/bounce in US$/Yen, program and fast$ sales in belly, pre-auction
short sets ahead $30B 7Y auction, light HG corp flow), option-tied hedging,
two-way positioning ahead Fri's PCE data -- accts eying sidelines ahead next
wk's 4th of July holiday. Swap spds still wider but off earlier levels, spd
curve off flats amid decent steepener flow, rate paying in 5s, 6s and 10s. Tsy
cash/ylds: 2Y 99-30.75 (2.516%), 5Y 99-17.5 (2.723%), 10Y 100-08 (2.844%), 30Y
102-28.5 (2.978%).

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