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Tsys trading mostly higher after....>

US TSYS SUMMARY: Tsys trading mostly higher after midday, looking to revisit
late morning highs w/long end outperforming/curves giving back portion of wk's
steepening. Limited react to wkly claims (-24k to 209k vs. 231k exp), durable
goods new orders +2.6%, well above +1.7% exp. Waiting on Fri's Q1 GDP, ECI data.
- Early bid w/EGBs, Gilts following dovish Swedish Riksbank, steady ECB policy
annc; mild additional support as US$ looked weaker earlier. US$ index rebounded,
however, DXY +.315, 91.487) following on chatter White House seeking auto
concessions on steel-duty talks. ECB Draghi didn't talk June meet outlook
- US$/Yen at 109.282. Equities stronger (emini +22.75, 2667.25); gold weaker
(XAU -5.12, 1318.0); West Texas crude steady (WTI +.0, 68.05).
- Tsys held higher levels/narrow range after $29B 7Y auction stopped through w/
2.952% rate vs. 2.957% WI (previous $29B 7Y auction stopped through to 2.720%);
2.56 bid/cover vs. 2.34 prior (2.62 avg).
- Decent volume, better buying on 2-way flow, heavy upside call buying
continues. Short end Eurodollar buying (EDM8 +3.0 to 97.635) after 3M LIBOR
slipped -0.0069 to 2.3587% (-0.0065/wk).

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