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*** Tsys trading mostly lower,......>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys trading mostly lower, just off post-BoE annc lows,
Tsys pared gains/traded lower w/Gilts, curves steeper on heavier volume
(TYH>650k). US$ index little firmer (DXY +.140, 90.396), equities firmer (emini
+1.5, 2669.75), gold falling (XAU 1308.50), West Texas crude extending Wed's
late second half drop (WTI -0.57, 61.22).
- Asia, Tsys opened w/mild bid following Wed's post auction selling after newly
upsized +$1B to $24B) 10Y note auction tailed .8bp. Two-way flow w/rates holding
narrow band, came under pressure in lead-up to London open, fx-tied selling as
US$ gained, positioning ahead BoE.
- London, pared gains into the BoE annc, followed Gilts lower, curve bear
steepening. Sources reported flattener unwinds, real$ selling 5s and 10s. Desks
watching long-term trendline support in USH that has held for >10yrs (appr
141-00), incoming supply to contend with.
- Swaps, spds running mixed, spd curve flatter, long end tighter ahead upsized
$16B 30Y bond auction. Eurodollar futures, trades weaker/session lows. LIBOR
gains 3M +0.0106 to 1.8105% (+0.0215/wk), 6M +0.0259 to 2.0263% (+0.0342/wk)

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