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*** Tsys trading firmer, near top...>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys trading firmer, near top end overnight range on
heavier volume (TYH>480k; inter-dealer broker volume >130%), 10Y yld -.0146 to
2.5316. Curves mixed (2s10s -1.475, 52.972; 5s30s off lows: +.167, 50.253).
Quiet data day, Tsys trail Bunds higher, focus on Reuters ECB story ECB not
planning bond purchase plan changes until March. Equities gaining (emini +10.25,
2799.0), gold weaker (XAU -3.70, 1336.32), oil softer (WTI -0.28, 64.02).
- Asia, Tsys opened steady/mixed, gaining steadily through London crossover,
prop and fast$ buying 5s and 10s.
- London, grinding bid w/carry-over bank interest 5s30s flatteners, bank and
real$ buying 10s, 30s.
- Swaps, spds running wider, spd curve flatter in line w/spec and bank portfolio
curve flow, deal-tied selling ahead more swappable supply after near $70B total
priced last week. Earlier flys, receiving in the belly of a 8Y-9Y-10Y fly and
paying in the belly of a 3Y-4Y-5Y fly.
- Eurodollar futures, steady/mixed, short end underperforming, decent EDH8 and
EDH9 sellers.

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