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Tsys trading mixed, curves..........>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading mixed, curves continue to flatten (2s10s -2.036,
28.227) w/long end outperforming, generally quiet trade ahead Jun FOMC minutes
release, others sidelined ahead Fri's NFP and $34B China tariff deadline.
- US$ index little softer (DXY -0.165 to 94.366; US$/Yen see-saws in higher
range +.14 110.63); equities strong/off highs (emini +18.0, 2731.25, 1235.75H);
gold firmer (XAU +2.81 1257.47); West Texas crude weaker/off mildly higher
levels following EIA data (WTI -.90, 73.24).
- Rates had opened weaker, curves steeper on modest carry-over risk-on from
London trade, limited react to data though US$/Yen pared gains post ADP private
employ data -- in-line w/rates reversing early weakness. additional impetus
appears to be widening sovereign spds, notably Italy pushing wider vs. Bunds
(+8.3, 243.5). Swap spds mostly wider by midmorning, spd curve steeper, mixed
flow, decent (>$750M) payer in 1s. No new high-grade corp supply.
- Tsy cash/ylds: 2Y 99-29 (2.547%), 5Y 99-16 (2.731%), 10Y 100-10.5 (2.835%),
30Y 103-12 (2.952%).

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