Tsys trading higher into the bell...>

US TSYS SUMMARY: Tsys trading higher into the bell near the top of the range,

light volume (TYU 990k), curves flattening; US TSY 30Y $18B Bond auction came in

with a yld at 3.09% which was 0.3 bps higher than the WI of 3.087% at the

auction deadline; data today was light and had little impact on Tsy, PPI came in

slightly under expectations, Initial unemployment claims were below expectations

at 213k vs 220k expected however Claims were revised up to 219k in the July 28

wk; Looking ahead to tomorrows CPI data where analysts expect overall and core

PCI to rise +0.2% in July; 

-Fed's Evans spoke today on inflation saying there's "GOOD REASON TO EXPECT INFL

TO STAY AROUND 2%" and "INFL AT 2.25%-2.5% CLD BE IN LINE WITH SYMMETRIC OBJ".

-West Texas Crude (WTI -0.09, 66.85), US$/Yen (JPY +0.09, 111.07,

111.18H/110.71L); DXY climbing to new session highs (+0.437, 95.529); Equities

higher (emini +3.50, 2,858.75); Gold falling (XAU -2.28, 1211.67); Tsy

cash/ylds: 2Y 99-30.25 (2.649%), 5Y 99-22.75 (2.811%), 10Y 99-15.5 (2.933%), 30Y

100-27.5 (3.080%).