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*** Tsys trading weaker, lower......>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys trading weaker, lower half overnight range on decent
volume (TYH> 500k, roll to Jun futures inflating figure). Ylds at new 4-year
highs, 10Y tapped 2.9261%, 30Y tapped 3.1720%. Focus on Wed's FOMC minutes for
Jan policy meeting. 
- US$ index firmer (DXY +.471, 89.571); equities weaker (emini -16.0, 2719.0);
gold weaker (XAU -7.46, 1339.13); West Texas crude little firmer (WTI +.43,
62.11).
- Asia, Tsys opened steady to Mon's Globex closing levels, drifted lower into
London cross
- London, chopped lower amid technical selling and deal-tied hedging, large 4Wk,
3m, 6M bill as well as $28B 2Y note auctions today.
- Swaps, spds running mixed, spd curve flatter, rate paying in 2s at 2.490%
- Eurodollar futures, lower across the strip, Greens (EDH0-EDZ0)
underperforming, front quarterly bid evaporated after 3M LIBOR set +0.0118 to
1.9038% (+0.0190/wk). Heavy option volume/renewed hedging as underlying
continues to price in quarterly rate hikes.

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