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Tsys trading modestly firmer, bounce...>

US TSY FLOWS
US TSY FLOWS: Tsys trading modestly firmer, bounce after Tue's heavy selling to
near top end overnight range, moderate volume (TYZ>300K); ongoing EM concerns
extends to Indonesia and India, meanwhile BTP compresses vs. Bunds for second
day. Light data day, better Fed speak from Fed pres' Bullard, Bostic, Kashkari.
- US$ strength continues, dollar index off highs DXY +.024, 95.464
(95.280L/95.663H), $/Eur +0.0004 at 1.1586, $/Yen near +.19 111.60; equities
weaker/off lows (emini -7.0, 2891.25); Gold firm (XAU +2.30, 1993.86); West
Texas crude weaker/off lows (WTI -0.90, 68.97) after rallying to late 2014 highs
Tuesday (71.40) on back of Iran supply squeeze, tropical storm Gordon concerns.
- Asia/London trade, underlying risk-off buying, short covering on trade
concerns (Trump threat of $200B more tariffs for China), and as global equities
retreated, Shanghai comp declined appr 1.7% after soft China PMI. Two-way in
belly early London trade, better buying 5s-10s from props, and real$. Big jump
corp issuance after wks of muted supply, appr $12B Tue, likely matched today.
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%).

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