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Tsys trading stronger, off recent...>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading stronger, off recent highs to upper half of range
following core EGBs, risk-off/safe-haven support as Italy election concerns take
center stage (10Y Italy vs. Bunds +48.0/282.0; Greece, Portugal, Spain wider in
turn). Tsy ylds in retreat w/Bunds, rate hike chances reduced to Jun and Dec.
- USD index chopping near late highs (DXY +0.449, 94.867; US$ vs. Yen -0.47,
108.94); stocks weaker (emini -18.25, 2700.0); gold firmer (XAU +4.59, 1302.70).
West Texas crude adding to last wk's rout (WTI -0.98 to 66.9).
- Asia, steady/mildly weaker open, sideways trade through much of Asia trade,
two-way in belly, real$ +10s ahead London cross.
- London, Italy ylds gap higher on political crisis, Tsys surge w/Bunds through
early trade, curves mixed w/fast$ +2s-5s, central bank -5s, better real$ buying
10s and 30s, decent Jun/Sep futures volume ahead May 31 first notice
- Swaps, spds mixed, wings mildly tighter vs. decent widening in bell (5s lead).
Eurodlr futures stronger, Greens outperforming (EDM0-EDH1 +0.070).
- Tsy cash/ylds: 2Y 100-04.6 (2.422%), 5Y 100-09.5 (2.684%), 10Y 100-04
(2.859%), 30Y 101-22 (3.037%).

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