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

US TSYS SUMMARY
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%)

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