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Tsys trading weaker, decent.........>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading weaker, decent futures volume in TYM >470k w/10YY
over 3.024% (3.0296% high late overnight), yld curves giving back small portion
Tue's steepening. US$ index higher/off earlier highs but rebounding (DXY +.345,
91.111; US$ vs. Yen 109.20 vs. 109.27H); equities adding to Tue's sell-off
(emini -12.0, 2623.25); gold weaker (XAU -8.91, 1321.48); West Texas crude
little softer (WTI -0.14, 67.56).
- Asia, Tsys opened mildly weaker, drifted in narrow range on modest volume into
London crossover, brief early FX acct selling after 10YY climbed to 3.07% then
settled back.
- London, more concerted selling as 10YY climbed to near 3.03%, better bank
selling in 10s, deal-tied flow in the mixed along with pre-auction selling ahead
$17B 2Y FRN and $35B 5Y note auctions
- Swaps, spds running steady to mildly wider, moderate 2-way flow, supply
hedging, bank portfolio receiving in short end, real$ receiving in 30s.
- Eurodollar futures weaker across the strip, short end sales post 3M LIBOR set
(+0.0040 to 2.3656%, +0.0064/wk).

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