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

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading steady/mixed, off early session lows by midday,
curves bear steepening but have scaled back from early session steeps'. Remains
quiet ahead heavy policy wk (BoJ Tue, FOMC Wed, BoE Thu) and data capped by July
NFP Friday. US$ index near lows, DXY -.356 to 94.313; US$/Yen mildly lower/off
lows, -.05 to 111.0 (111.17H/110.89L); equities weaker (emini -14.0, 2803.75);
gold softer (XAU -0.53, 1222.73); West Texas crude strong, holding over 70.0
after Fri's sell-off (WTI +1.42, 70.11).
- Light two-way flow on net, early sales unwound into midday, little/no
deal-tied flow, little substantive data to cover. Tue's BoJ focus: could adjust
its MonPol settings, through an ETF purchase tweak, the removal of
pre-announcements re: Rinban or even an alteration to Yield Curve Control (YCC).
Block 5s/10Y-ultra flattener Block.
- Modest option volume, light hedging (TYU well under 750k by second half)
typical light summer volume ahead heavy bout of data and policy risk. Tsy
cash/ylds: 2Y 99-29 (2.669%), 5Y 99-17.25 (2.848%), 10Y 99-06.5 (2.969%), 30Y
100-16.5 (3.097%).

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