*** Tsys trading weaker, just off...>

US TSYS SUMMARY: *** Tsys trading weaker, just off late overnight lows on heavy

volume (TYH>540k), some dip buying after 10Y yld climbed to 2.6126% (March 2017

highs), reports of stops triggered in futures on way down. Equities near steady

after Wed's surge to new highs (emini -0.25, 2803.5), gold firmer (XAU +2.46,

1329.61), oil little firmer (WTI +0.09, 64.06). 

- Chatter of negative convexity hedging on breach of 2.6% during London hours --

but said accts have had ample time to anticipate (ergo, yld move wasn't exactly

a gap higher, spurring heavier/unexpected sell-off). Sell-off more on opinion of

central bank tapering/QE wind-down as global economies improve. 

- Asia, lower open/held narrow range through to the London crossover. China Q4

GDP rising to 6.8% y/y, >exp of 6.7% y/y. 2-way flow after early sales.

- London, selling picked up early, Austria, SPain, France, UK supply weighed.

- Swaps, spds running mostly wider, spd curve mildly flatter, flow includes rate

paying in 2s at 2.25375-2.2555%, payer in 10s at 2.6160%

- Eurodollar futures, trading steady to mildly lower out the strip, off late

overnight lows.