Tsys trading lower as equities......>

US TSYS SUMMARY: Tsys trading lower as equities rebound today (emini +24.50,

2,845.75), volume (TYU 850K), curves mixed; 2's10's up (+.523, 25.529) as

2's30's and 5's30's remain lower; Data this morning came in mixed as Initial

unemployment claims were below expectations in the Aug 11 wk, but claims were

revised up to 214k in the August 4 wk; July housing starts +0.9% to 1.168m SAAR,

below the 1.270m exp, revisions for Jun and May came in mixed; Philly Fed MFG

came in much weaker than expected +11.9 vs +22.0 exp, +25.7 Last; Tsy futures

opened lower with overnight headline, "*CHINA VICE COMMERCE MINISTER TO VISIT

U.S. FOR TRADE TALKS-BN", the talks are are to take place at the end of Aug;

-Headlines driving the DOW higher (DJIA +362.39, 25,524.80), "*WALMART SHARES

GAIN 7.5% ON BOOSTED YEAR OUTLOOK, COMPS. BEAT-BFW" and "Boeing Stock Rises

3.9%; Trading Volume Doubles-BN"

-DXY lower (-.225, 96.471, 96.765H/96.316L); US$/Yen reversing higher (JPY

+0.11, 110.85); West Texas Crude higher (WTI +0.32, 65.33); Gold weaker (XAU

+4.39, 1179.27); Tsy cash/ylds: 2Y 99-31.75 (2.625%), 5Y 99-30.5 (2.758%), 10Y

99-29 (2.884%), 30Y 99-02 (3.047%).