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Tsys trade steady/mixed, inside........>

US TSY FLOWS
US TSY FLOWS: Tsys trade steady/mixed, inside range day w/long end regaining
footing after $31B 7Y note auction traded through: awarded 2.844% rate vs.
2.850% WI (previous $30B 7Y awarded 2.930%); 2.65 bid/cover vs. 2.49 prior (2.62
avg). No react to data: Q2 GDP (2nd) +4.2%, NAR pending home sales index -.7% to
106.2.
- US$ index well off early highs DXY -.122, 94.598 (94.932H), $/Eur firm +0.0009
1.1704, $/Yen strong +.56 111.76; equities strong (emini +16.0, 2915.25); Gold
firm (XAU +4.68, 1205.63); West Texas crude firm (WTI +0.94, 69.47).
- Decent volume on day due to ongoing Sep/Dec roll action ahead Dec taking lead
contract Fri (TYU>1.69M; TYU/TYZ>858k, 79.1% complete). Otherwise, trade rather
muted, typical for late summer trade, two-way, fast$ steepener unwinds in front
end, deal-tied flow. Headline sensitivity continues, risk-on after headline that
EU prepared to "offer Britain unprecedented partnership"; GBP pared gains after
German foreign ministry said "no special rules post-Brexit". CAD rallied on PM
Trudeau saying possible trade deal by Fri. Tsy cash/ylds: 2Y 99-28.7 (2.673%),
5Y 99-28 (2.775%), 10Y 99-30 (2.880%), 30Y 99-19 (3.019%).

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