Tsys trading weaker but climbing.......>

US TSY FLOWS: Tsys trading weaker but climbing steadily off lows over last three

hours, despite weaker stocks, continued focus on EM. 

- Tuesday kicks things off with Construction Spending (0.4% est), ISM Index

(57.9 est) and light vehicle sales.

- Continued US$ strength, dollar index near highs DXY +.409, 95.549

(95.138L/95.618H), $/Eur off -0.0057 at 1.1563, $/Yen off highs +.18 111.25;

equities weaker/near lows (emini -7.0, 2895.0); Gold weak (XAU -7.61, 1993.38);

West Texas crude rally to late 2014 highs (WTI +1.40, 71.20) on back of Iran

supply squeeze headlines and tropical storm Gordon concerns.

- Asia, weaker open and sideways trade on narrow range, macro acct steepeners,

flattener unwinds. London trade included better fast- and real$ selling 5s and

10s, prop and bank portfolio buying intermediates. Potential for massive jump in

issuance next week, estimates running over $50B w/Cigna planning over $22B jumbo

issuance to help finance acquisition of Express Scripts. 

- Tsy cash/ylds: 2Y 99-31 (2.629%), 5Y 100-01.25 (2.740%), 10Y 100-02.5

(2.864%), 30Y 99-12.5 (3.030%).