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*** Tsys trading steady to mildly...>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys trading steady to mildly higher out the curve, near
top end of modest range on modest volume w/China markets closed for New Year
holidays (TYH>250k). Quiet end to week, UMich sentiment later (95.0 est). US$
index little firmer (DXY +.137, 88.730; US$ bounce off 105.55 O/N low vs. Yen,
106.28 last); equities firmer (emini +6.0, 2740.0); gold firmer (XAU +2.61,
1356.30); West Texas crude near steady (WTI +.03, 61.67).
- Asia, Tsys opened weaker/traded sideways on light volume into London cross,
2-way flow noted in 10s. US$/Yen bounce off 105.72 200DMA/106.281 last
- London, Tsys inched higher after a steady open, long end making modest new
highs recently, macro fund buying in 10s vs. bank selling.
- Swaps, Spds running tighter in the short end, mildly wider out the curve.
Sources reported misc acct paying in short end during Asia hours, bank receiving
in 10s.
- Eurodollar futures, Whites through Greens (EDH8-EDZ1) weaker, front quarterly
under pressure w/3M LIBOR +0.0124 to 1.8849% (+0.0649/wk), back to late Dec '08
lvl vs. compares to Oct 2008 highs around 4.818%.

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