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Tsys trading mildly weaker, near....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading mildly weaker, near middle of range. Anemic volume
w/appr 870k TYU by the bell. Second consecutive day of quiet early summer trade
w/second tier data, $33B 3Y note auction tailed slightly (awarded a 2.685% rate
vs. 2.680% WI). Headline watching rather boring as US Pres Trump departs for
NATO summit today. PPI Wed, CPI Thu, Fed to release chairman Powell's Semiannual
monetary policy report to Congress at 1100ET Friday, July 13.
- US$ index little higher/pared earlier gains (DXY +0.062 to 94.138; US$/Yen
higher +.41 111.26 (111.35H/110.80L); equities firmer (emini +8.25, 2795.75);
gold little weaker (XAU -1.56 1256.14); West Texas crude rebounds/mildly higher
(WTI +.20, 74.05).
- Limited two-way flow, better selling in short end, deal-tied flow on decent
supply pick-up, 3Y auction hedging. Early fast$ steepeners unwound, FX-tied
selling as US$ held gains vs. Yen. Heavy TYU call option trade (+200k TYU
120/122c spds, 33-35)
- Tsy cash/ylds: 2Y 99-26.5 (2.586%), 5Y 99-10.5 (2.769%), 10Y 100-01.5
(2.867%), 30Y 103-03 (2.967%).

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