Tsys trading mixed after firmer........>

US TSY FLOWS: Tsys trading mixed after firmer open, curves steeper for second

consecutive session. Tsys followed Gilts lower after initial reports that German

and UK to drop key Brexit demands -- denial couple hours later as German

spokesman said govt stand on Brexit demands have NOT changed. Long end back to

steady, curves maintain steeper profile early in second half.

- Limited react to second-tier data, Tsys did bounce/US$ reversed gains

following StL Fed Pres Bullard comments that "more hiking could unnecessarily

raise recession risk." Fed pres' Bostic, Kashkari speak later in evening.

- US$ index off highs DXY -.254, 95.185 (95.085L/95.663H), $/Eur +0.0041 at

1.1623, $/Yen +.16 111.57; equities weaker/off lows (emini -9.0, 2889.25); Gold

firm (XAU +4.0, 1995.56); West Texas crude weaker/near lows (WTI -1.00, 68.87)

after rallying to late 2014 highs Tuesday (71.40).

- Decent two-way flow in shorts to intermediates, Blocked steepener FVZ/WNZ

(duration neutral) and outright buying 13.8k FVZ, decent deal-tied hedging/heavy

corp supply. Tsy cash/ylds: 2Y 99-30.5 (2.645%), 5Y 99-30.5 (2.758%), 10Y

99-28.5 (2.886%), 30Y 99-28 (3.057%).