Tsys trading mostly weaker,.........>

US TSYS SUMMARY: Tsys trading mostly weaker, following Bunds/Golts lead to near

late overnight lows, Tsy curves bouncing off 10+ year lows (dead-cat bounce?);

10YY tapped 2.895%, near Feb 21 4+ year high of 2.950%. US$ index mildly higher

after some decent chop overnight (DXY +.025, 89.648; US$/YEN>107.42); equities

seeing mild selling (emini -3.75, 2706.0); gold near steady (XAU +0.30,

1349.73); West Texas crude making new 3+ year highs (WTI +.99, 69.46).

- Asia, Tsys opened steady to NY closes, held narrow range/drifted higher into

London crossover on modest 2-way flow.

- London, Tsys followed Bunds/Gilts lower, part tied to Gilt supply and to

FX-tied vol/bounce in US$. Decent pick-up in volume, flow included FX-tied

sales, bank portfolio buying 10s, prop acct fading curve moves strapping on new

5s30s steepeners. Deal-tied flow amid more expected corp/supra-sov issuance. 

- Swaps, spds mildly mixed, short end wider. Decent flow included $1B nominal 1Y

receiver at 2.5125%, bank portfolio receiving in 2s-5s, deal-tied paying in 10s.

- Eurodollar futures, steady/mixed, short end bounce post 3M LIBOR +0.0029 to

2.3615% (+0.0087/wk).