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Tsys trading firmer by the bell,....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading firmer by the bell, well off post data gap-trade.
Rather disappointing trade on anemic volume w/appr 640k TYU since the open
adding to 250k overnight. Little react as tariffs on Chinese goods took effect
midnight Thu (reaction to tariffs already priced in, potential for negative
consequences of to economy will take much longer to show up).
- US$ index weaker (DXY -0.353 to 94.042; US$/Yen lower -.22 110.42
(110.79H/110.38L); equities stronger (emini +25.5, 2764.0); gold weaker (XAU
-2.6 1255.27); West Texas crude rebounds (WTI +.87, 73.81).
- Mkt overreacted to data, "mainly because wages didn't meet expectations, and
the U/E rate nudged higher to above 4.00%," one trading desk said. Others
posited algo related buying caused post data spike (only picking up on the AHE
figure). Limited 2-way flow from late morning on, light position squaring ahead
weekend, rates paring gains later in second half, fast$, props selling 10s. Fed
to release chairman Powell's Semiannual monetary policy report to Congress at
1100ET Friday, July 13. Tsy cash/ylds: 2Y 99-29 (2.541%), 5Y 99-17.5 (2.721%),
10Y 100-12.5 (2.827%), 30Y 103-22 (2.938%).

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