Tsys trading stronger, near top.....>

US TSYS SUMMARY: Tsys trading stronger, near top end of late overnight range on

better volume of late (TYM>400K), long end leading/rebound from Wed's post FOMC

sell-off, EGBs follow suit on weak Markit PMI data, while US$ looses ground vs.

Yen (105.6). US$ index on the other hand well off lows (DXY -0.65, 89.718 vs.

89.396L); equities under pressure (emini -19.25, 2699.0); gold little weaker

after Wed's rally (XAU -2.45, 1330.0); West Texas crude steady after Wed's rally

(WTI +0.00, 65.17).

- Asia, Tsys opened steady/mildly higher to Wed's late levels, inching higher on

narrow range into London crossover. Improved volume w/Tokyo back from holiday.

foreign real$ buying in 5s.

- London, Tsys continued to gain, risk-off tone w/equity slide (US tariff annc

expected today), bank portfolio buying in 5s, 10s and 30s, short

covers/repositioning as mkt continues to digest Wed's FOMC, deal-tied selling in

the mix.

- Swaps, spds wider, spd curve steepeners, front end flys/receiving belly noted

- Eurodollar futures, also bouncing, long end leads, waiting for lates 3M LIBOR