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

US TSYS SUMMARY: *** Tsys trading firmer, near top end of range, modest volume

(TYH>260k) even w/Japan back from holiday; quiet data day w/Redbook retail

sales, Fed speak: Clev Fed Pres Mester at event in Ohio, Ohio, Q&A. US$ index

weaker (DXY -.473, 89.735), equities weaker/off lows (emini -8.75, 2646.5), gold

firmer (XAU +6.20, 1328.96), oil little weaker (WTI -.18, 59.11).

- Asia, Tsys opened steady/traded mixed in narrow range first few hours of

trade, gaining couple hours ahead London crossover, just as US$ vs. Yen tumbled

from 108.7 to 107.6 (Nov'16 lows) w/equities following suit. Sources reported

selling in off-the-run 10s, real$ buying long end.

- London, Carry-over bid as US$ continued to recede vs. Yen, fast- and real$

buying 10s, bank buying 30s.

- Swaps, spds running mostly tighter, spd curve flatter on modest flow, 2s vs.

3s flatteners, light deal-tied hedging.

- Eurodollar futures, steady to modestly higher out the strip. Front end bid

even as LIBOR rates continue to set higher 3M +0.0053 to 1.8387% (+0.0187/wk),

6M +0.0085 to 2.0571% (+0.0188/wk).