Tsys trade weaker by the bell,......>

US TSYS SUMMARY: Tsys trade weaker by the bell, near middle of the range on

light volume (TYM<810k); curves manage to recover slightly after flattening to

new 10+ year lows late last week (5s30s +1.145, 27.564).

- Quiet start to the wk, no relevant data, focus on Fed speakers, StL Fed Pres

Bullard: "no need to invert yld curve via aggressive Fed hikes" after Clev Fed

Pres Mester in Paris talked up gradual hikes, change in policy framework. Retail

sales on tap Tuesday (0.3% est; ex. motor vehicle, 0.5% est).

- Lower much of the day, US$ index rebounded late (DXY +.052, 92.589); US$/Yen

109.649; equities little higher (emini +1.0, 2730.5), West Texas crude little

higher/well off earlier lows (WTI +0.36, 71.06 vs. 70.26L); gold weaker (XAU

-4.81, 1313.49). 

- Modest two-way trade w/better sellers, in belly/long end into midday. Corp

supply picked up in earnest, hedging active. Tsy Jun/Sep futures roll slowly

picking up TUM/TUU leads w/appr 50.4k from 6.5 to 6.75. Eurodollar futures,

mixed, short end well bid w/3 Month -0.0125 to 2.3300%.

- Tsy ylds: 2Y 2.541%, 3Y 2.699%, 5Y 2.850%, 7Y 2.957%, 10Y 2.991%, 30Y 3.127%