Tsys trade steady/mixed into the....>

US TSYS SUMMARY: Tsys trade steady/mixed into the close, mid- to lower half of

range, curve off new 10+ year flats tapped in the first half (5s30s 26.218L),

modest session volume (TYM<920k) on quiet end to wk. Quiet reversal of support,

long end pared gains prior to U-Mich data and Fed Bullard comments: yld curve

inversion risk "crunch time", current policy rate pressing against 'upper bound'

of neutral, low mkt-based infl measures cautions rate hikes. 

- US$ index lower/off lower (DXY -.082, 92.568; US$/Yen 109.272); equities

firmer (emini +5.75, 2724.5), West Texas crude weaker (WTI -0.82, 70.54 vs.

71.63H); gold weaker (XAU -1.80, 1319.80). 

- Swaps spds tighter/spd curve adding to prior day's steepening w/short end

leading move; 2Y spd currently back to early Feb level (lows for year appr 17.5

during January). Decent rate receiving/payer unwinds in 2s as front end of

Eurodollar strip surges (3M LIBOR -0.0125 to 2.3425%; FRA/OIS collapse -4.25,

35.8) w/others faded move via paying in 2s around 2.7675, receivers in 1s

(2.54875-2.55%), $214k 2s3s7s fly, paying 7s.

- Tsy ylds: 2Y 2.535%, 3Y 2.690%, 5Y 2.835%, 7Y 2.937%, 10Y 2.968%, 30Y 3.107%