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

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading weaker, just off late overnight lows, decent
futures volume (TYU>455k), yld curves little steeper. Rates taking cue from
softer EGBs and tighter sovereign spds, ignoring US$ weakness at the moment. USD
index off (DXY -.243, 93.371; US$ vs. Yen -0.11, 110.07 after tapping 200DMA of
110.21 late Wed); stocks firmer (emini +2.25, 2778.25); gold higher (XAU +1.71
1298.11); West Texas crude higher (WTI +0.66 to 65.39).
- Asia, quiet session w/Tsys opening steady to late NY lvls, trading
sideways/narrow range on two-way flow through London crossover again.
- London, light risk-on tone on tighter peripherals, supply from France and
Spain weighing on EGBs, Tsys in tow. Flow included deal-tied hedging, fast- and
real$ buying intermediates and 10s
- Swaps, spds rebound from early week narrowing on light flow w/receiving in 1s,
paying in 2s at 2.89125%, two-way in 3s around 2.885% and paying in 5s.
Eurodollar futures, moderate selling down to 97.655 post 3M LIBOR set (+0.0063
to 2.3271%, +0.0093/wk). Tsy cash/ylds: 2Y 99-30.5 (2.520%), 5Y 99-21.25
(2.821%), 10Y 99-01.5 (2.985%), 30Y 99-23 (3.138%).

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