*** Tsys trading steady/mixed,......>

US TSYS SUMMARY: *** Tsys trading steady/mixed, long end lower after paring late

overnight gains last hour, following Bunds; curves steeper but off earlier highs

(2s10s 57.712, +.385; 5s30s 45.418, +.488). Another night of heavy futures

volume (TYZ>575k). Equities lower (emini -12.50, 2841.0), gold firmer (XAU

+3.10, 1343.32), oil weaker (WTI -.65, 64.92).

- Asia, Tsys traded mildly lower after steady open, rebounded on modest two-way

flow, holding narrow range into London crossover, FX-tied buying intermediates

- London, Tsys traded mildly higher early London hours. Sources reported macro

fund sales short end, central bank buying intermediates, real$ buying in the

long end earlier. Bank and real$ sales over trimmed gains over last hour, prop

acct selling in intermediates; modest two-way positioning w/accts squaring up

ahead week's event risk (POTUS SoU tonight, FOMC Wed along w/ADP, NFP Fri.

- Swaps, spds running mixed, spd curve mildly flatter. Sources reported fast$

paying in belly, spd curve steepeners out the curve from bank portfolios.

- Eurodollar futures, trading steady/marginally mixed, Greens (EDH0-EDZ0) little

better at the moment. 3M LIBOR +0.0012 to 1.7734% (+0.0065/wk).