Tsys trade mildly weaker on the.....>

US TSYS SUMMARY: Tsys trade mildly weaker on the back of narrowing in sov spds

vs. Bunds (Italy -12.3 to 173.0; Greece -18.1 to 379.0); Tsy ylds little higher

w/weaker US$. No Fed speak today, second tier data today, $33B 2Y note auction

and of course May FOMC minutes Wed.

- The USD index mildly weaker/near lows (DXY -0.278, 93.399; US$/Yen -.10,

110.96); stocks adding to Mon's rally (emini +5.0, 2738.0); West Texas crude

adding to Mon's rally (WTI +0.18, 72.42); gold firm (XAU +1.74, 1294.34).

- Asia, Tsys topped out/traded sideways after steady/mildly firmer open. Tsys

reversed ahead London cross as US$ reversed course. Early flow included real$

buying 5s and 10s, fx-tied selling ahead London open. London, continued FX

selling early, fast$ sold 5s, pre-auction hedging, two-way in belly, pull-back

in sov spds contributed to waning support. Jun/Sep futures rolling continues

- Swaps, mildly tighter, low end of range; decent $460M payer in 2s at 2.8109%

recently, fast$ 10s30s steepeners. Eurodollar futures mildly lower.

- Tsy cash/ylds: 2Y 99-19.5 (2.578%), 5Y 99-08 (2.912%), 10Y 98-08.5 (3.078%),

30Y 98-10 (3.212%)