Tsys trading weaker, near recent....>

US TSYS SUMMARY: Tsys trading weaker, near recent lows, following softer Gilts

again after strong UK labour market data. Otherwise quiet, light volume

(TYM<190k) ahead FOMC rate annc later, 0.25bp hike expected, focus on SEP/dot

plot Fed chair Powell presser. 

- US$ index giving back some of Tue's gains (DXY -.233, 90.138); equities steady

(emini +0.00, 2723.5); gold firmer (XAU +4.37, 1315.67); West Texas crude adding

to Tue's rally (WTI +.67, 64.21 -- early Feb levels).

- Asia, steady to mildly higher open vs. Tue's sets'. Light volume w/Tokyo out

on holiday, Tsys inched off lows on narrow range into London crossover, light

bank portfolio buying in 2s, fast$ buying 5s.

- London, light two-way flow on net, position squaring ahead FOMC, fast$ selling

5s post UK data; steepeners in 2s5s and 5s30s

- Swaps, spds running wider, short end leading move amid reports of better

paying in 2s, small switch in 3s and 7s.

- Eurodollar futures, weaker across the strip, just off late overnight lows,

still anticipating another lower 3M LIBOR set.