Tsys trading mostly lower, curves...>

US TSYS SUMMARY: Tsys trading mostly lower, curves rebounding with long end

underperforming, moderate futures volume so far (TYM>230k). US$ index receding

for third consecutive session (DXY -.234, 92.303, appr 1.2% off May 9th high).

- US$/Yen 109.551; equities firmer (emini +4.5, 2734.0), West Texas crude little

higher/well off earlier lows (WTI +0.10, 70.80 vs. 70.26l); gold firmer (XAU

+1.01, 1319.31). No data to speak of today (Retail sales Tue), focus on Fed

speakers, Clev Fed Pres Mester in Paris earlier talks up gradual hikes, change

in policy framework.

- Asia, quiet open/steady to mildly bid on narrow range into London hours, fast$

buying short end. London, steady open, Tsys followed Bunds lower in early trade,

real$ +10s, bank selling 30s

- Swaps, spds running tighter, carry-over spd curve steepening w/ 3M FRA/OIS

-3.05, 32.80. Flow includes prop acct receiving in 2s, real$ paying

intermediates, bank paying 10s.

- Eurodollar futures, mixed, short end well bid w/3 Month -0.0125 to 2.3300%.

- Tsy ylds: 2Y 2.535%, 3Y 2.693%, 5Y 2.842%, 7Y 2.945%, 10Y 2.979%, 30Y 3.112%