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Tsys trading firmer, rebounding.....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading firmer, rebounding to near early overnight highs,
tracking Gilts after strong 10Y auction. Data on tap, wkly claims (+228k est),
import/export price index and Philly Fed Mfg index (24.0 est).
- Decent volume on choppy trade (TYM appr 370k); US$ index mildly higher (DXY
+.050, 89.754; USD/Yen fell to 105.8, 105.99 now); equities mildly higher (emini
+.225, 2756.25); gold softer (XAU -2.25, 1322.45); West Texas crude little
firmer (WTI +.32, 61.28).
- Asia, steady to weaker open, bouncing to overnight highs soon after as US$
lost ground to Yen w/pair falling below 105.9 from 106.3. Fast$ buying 5s, real$
buying 10s, buyers cash out the curve amid otherwise 2-way flow into London
cross.
- London, choppy two-way trade with misc sellers in intermediates early, large
TYM Block sale (-10.4k 120-17.5). Tsys tracked bounce in Gilts recently.
- Swaps, spds running tighter, swap receiving in the front-end of the curve
- Eurodollar futures, trades modestly higher for the most part, EDH8 little
weaker ahead 3M LIBOR set.

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