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Tsys trading moderately higher,.....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading moderately higher, scaling back early overnight
risk-off support amid ongoing trade angst after U.S. Pres Trump tweeted threat
of "more than Reciprocity" Sunday against countries w/trade barriers/tariffs
against US. Early gains also coincided w/drop in US$/Yen. Choppy O/N for US$
index (DXY -.104 to 94.416 last vs. 94.698H; US$/Yen -0.38 to 109.59 vs.
109.38L); equities broadly lower (emini -16.0, 2743.5); gold little weaker (XAU
-.86, 1268.55); West Texas crude little firmer after blowing past 50DMA Fri (WTI
+0.15, 68.73).
- Asia, quiet open, Tsy futures gained early as US$/Yen ratcheted lower, prop
buying short end, program buying in belly.
- London, carry-over risk-off bid, Tsys also trailing EGBs as sovereign spds
widen (Italy/Bund 5Y +11.8, 220.0, flow two-way by midmorning, real$ selling 7s.
- Swaps, directionally tighter w/lower Tsy ylds, decent receiving 2s and 3s.
Eurodollar futures, firmer, off top end of range despite lower 3M LIBOR set
(-0.0018 to 2.3370%, +0.0129 last wk). Tsy cash/ylds: 2Y 99-29.5 (2.537%), 5Y
99-31 (2.755%), 10Y 99-29.5 (2.882%), 30Y 101-26 (3.031%).

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