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Tsys trading firmer, off recent.....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading firmer, off recent highs on choppy trade on German
political angst. Decent futures volume (TYU>465k) as Tsys spiked on spurious
headlines that Germany's CSU party would end alliance w/Merkel's CDU party, Tsys
quickly retraced as report denied. US$ off early highs (DXY -.071, 94.808 vs.
95.131H; US$/Yen +0.06, 110.70); equities weaker (emini -8.5, 2780.0); gold
weaker (XAU -2.46, 1299.84); West Texas crude near steady (WTI -0.01, 66.88).
- Asia, Tsys steady/mixed to late NY lvls, gained rapidly even as US$/Yen
rebounded off early lows, risk-off support on China willingness to retaliate
against $50B China goods tariff levy from US. Two-way flow, technical selling
after 10YY tapped 2.913% (compares to 3.0% post FOMC).
- London, two-way w/better risk-off support early London trade, fast$, prop
accts two-way in short to intermediates, buy stops triggered on German
headlines, real$, props sellers earlier highs.
- Swaps, spds mildly tighter, receivers in 3s, 2s3s flatteners. Tsy cash/ylds:
2Y 99-28 (2.562%), 5Y 99-24.25 (2.801%), 10Y 99-17 (2.928%), 30Y 101-13 (3.051%)

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