*** Tsys trading firmer, trailing...>

US TSYS SUMMARY: *** Tsys trading firmer, trailing move in EGBs (particularly

Bunds following German GDP) to just off top end of range amid heavy volume

(TYH>690k, largely due to ongoing roll action). Focus on multiple Fed speakers

(Williams, Mester and Rosengren at separate events) while Fed chairman Powell

will give his first semi-annual monetary policy report to Congress at 1100ET. 

- US$ index little firmer/off high (DXY +.132 to 89.868 vs. 90.059H); equities

stronger (emini +11.0, 2722.5); gold weaker (XAU -0.89, 1331.31); West Texas

crude little softer (WTI -0.10, 62.67).

- Asia, Tsys opened steady/mildly lower, traded sideways into the London

cross-over amid light two-way flow.

- London, Tsys rebounded soon after the open, following EGBs higher following

Euro CPI and German GDP data. Sources reported better real$ buying in 5s, misc

acct buying in 10s-30s. Ongoing Mar/Jun futures roll action spurs heavy volume

- Swaps, spds running wider, spd curve flatter

- Eurodollar futures, weaker in short end post LIBOR sets' (3M +0.0126 to

1.9562%/+0.0714/wk), mildly higher out the strip