Tsys trading weaker, 10YY>3.0% to...>

US TSYS SUMMARY: Tsys trading weaker, 10YY>3.0% to 3.019% (3.0263%H); lower half

of range in futures on decent volume (TYM>408k), curves mildly steeper. Focus on

Retail sales today (0.3% est; ex. motor vehicle, 0.5% est), SF Fed Pres Williams

w/Q&A at 1310ET, Clarida nomination hearing and TICS L/T flow at 1600ET.

- US$ index firmer/add to late Mon's bounce (DXY +.306, 92.893); US$/Yen

109.941; equities weaker (emini -7.5, 2723.5), West Texas crude higher/near

highs (WTI +0.58, 71.55, 71.15L/71.69H); gold weaker (XAU -6.10, 1307.42).

- Asia, mildly weaker open, Tsys traded sideways for much of early trade,

selling off ahead the London crossover w/decent selling in 10s, 30s from props,

real$ and FX accts.

- London, carry-over selling w/weaker Bunds and stronger US$. Sources reported

fast$ buying 2s, real$ buying 10s.

- Swaps, spds mixed/continued spd curve steepening, macro acct paying in 10s. 

- Eurodollar futures, Short end well bid post LIBOR, 3M -0.0094 to 2.3206%

(-0.0219/wk), EDM8 up to 97.727, good buying EDU8 97.56 (+13.5k) w/97.565 last.

- Tsy ylds: 2Y 2.548%, 3Y 2.712%, 5Y 2.874%, 7Y 2.985%, 10Y 3.019%, 30Y 3.148%