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Tsys trading weaker, bounce off late...>

US TSY FLOWS
US TSY FLOWS: Tsys trading weaker, bounce off late overnight lows last few
minutes. Rates extended lows early London hours (new 10+ year high 2Y yld) on
"solid" European eco-data and incoming supply (Spain of note). Data picks up
today (Redbook retail sales, wholesale inv's/sales, JOLTS); Tsy $35B 3Y auction.
- US$ volatility O/N, dollar index well off lows DXY +.058, 95.208
(94.882L/95.289H), $/Eur -0.0022 at 1.1572, $/Yen +.22 111.35; equities
weak/near lows (emini -8.0, 2872.25); Gold soft (XAU -2.16, 1193.71); West Texas
crude mild bid (WTI +0.12, 67.66). 
- Asia, very quiet start -- carry-over from moribund Monday, light two-way flow
w/better buyers on light volume into the London crossover.
- London, mild bid evaporated on strong UK wage data, core rates vs. Bunds
continue to improve (Italy/Bund 10Y -7.6, 198.0 mid). Volume picked up amid
central bank buying short end vs. pre-auction sales in 3s, real$ sold 5s and
30s, fast$ bought 5s recently. Eurodollar futures mostly lower, EDU8 went bid
after 3M LIBOR set steady. Tsy cash/ylds: 2Y 99-25.5 (2.727%), 5Y 99-17.75
(2.845%), 10Y 99-10 (2.953%), 30Y 98-03 (3.097%).

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