Tsys trading mostly higher by the...>

US TSYS SUMMARY: Tsys trading mostly higher by the bell, off late morning highs,

curves giving back portion of wk's steepening, 10YY below 3.0. Limited react

wkly claims (-24k to 209k vs. 231k exp), durable goods new orders +2.6%, well

above +1.7% exp. Next up Fri's Q1 GDP, ECI data.

- Early bid w/EGBs, Gilts post dovish Swedish Riksbank, steady ECB policy annc

(ECB Draghi didn't talk June meet outlook; early on weaker US$. US$ index

rebounded (DXY +.407, 91.579) as WH seeks auto concessions on steel-duty talks. 

- US$/Yen at 109.359 late. 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).

- Late ylds: 2Y 2.488%, 3Y 2.625%, 5Y 2.819%, 7Y 2.944%, 10Y 2.990%, 30Y 3.173%