*** Tsys trading firmer, at/near....>

US TSYS SUMMARY: *** Tsys trading firmer, at/near recent highs on heavy volume

(TYM>500k) despite reports of blizzard conditions in London hampering trade

volumes. Aside from flurry of data (weekly claims 226k est, core PCE 0.2% est,

personal income .3% est) markets will be watching Fed chair Powell's second

mon/pol testimony of week to Senate today. US$ index mildly higher (DXY +.119,

90.732); equities weaker (emini -8.5, 2706.0); gold weaker (XAU -10.26,

1308.11); West Texas crude weaker (WTI -.51, 61.13).

- Asia, Tsys opened steady, trading sideways into the London open. Sources

reported better buying in 7s from Asian accts.

- London, Tsys climbed higher following steady open, trailing German Bunds,

rally partially tied to weaker equities. Sources reported prop and bank

portfolio buying in 5s, 10s and 30s

- Swaps, spds mostly tighter, wings leading, receivers in 2s, 3s5s steepeners

- Eurodollar futures, Similar to Wed's move, short end gets additional boost as

3M LIBOR set not higher but pace is slowing down +0.0073 to 2.0245% today but

+0.0683/wk. Otherwise volumes moderate as March gets underway.