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Tsys traded strong in lead-up to....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys traded strong in lead-up to May FOMC minutes release,
showed little react to dovish/less hawkish tone (depending on viewpoint, as
others see "symmetry" as being "pre-emptively hawkish") with multiple mentions
of symmetrical objective, willingness to let things run hot. Still digesting
mention of tweaking IOER.
- Tsys rallied, curves bull flattened, late chop in long end, 10YY slipped below
3.0% briefly (3.0045% late). The USD index stronger (DXY +0.389, 93.997) but US$
vs. Yen -0.76, 110.14 vs. 109.56L on improved Japan outlook; stocks rebound
(emini +1.5, 2727.5); West Texas crude softer (WTI -0.48, 71.72 vs. 71.19L);
gold firm (XAU +2.66, 1293.80). Heavy futures volume on large Jun/Sep rolling
- Rates held gains on relative narrow range as mkts awaited the minutes release
after concerted/broad-based risk-off this morning w/ Italy, Turkey, China trade,
EM stress, NKorea summit delay talk, weak German/UK data all contributing to
theme; long end-lead Tsy rally, curves (mostly) flatter, US$ climbing. 
- Tsy cash/ylds: 2Y 99-30 (2.532%), 5Y 99-19.75 (2.832%), 10Y 98-28 (3.004%),
30Y 99-04.5 (3.169%)

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