Tsys trading weaker, off recent.....>

US TSYS SUMMARY: Tsys trading weaker, off recent lows, moderate volume

(TYM>340k), long end underperforming. Mild risk-on tone w/carry-over bid for

equities after late Wed's bounce (on eco-adv Kudlow off-cuff comments that China

tariffs tariffs w/China may not go into effect). 

Tsys also trail weaker EGBs post OAT auction. Mkt depth fairly thin ahead Fri's

data: Mar NFP (+195k est), AHE (+0.3% est). US$ index mildly higher (DXY +0.25,

90.167; US$/YEN>107.0); equities firmer (emini +12.0, 2658.5); gold weaker (XAU

-4.65, 1328.67); West Texas crude softer (WTI -0.08, 63.29).

- Asia, Tsy drifted lower/narrow range into London crossover, modest two-way

flow ahead China mkt holiday closure. London, follow through weakness, trailing

EGBs, FX-tied selling, macro-fund flattener interest after several days of

synthetic steepeners via options, real$ buyers across curve on lows.

- Swaps, spds running mixed, wings tighter vs. wider belly, light deal-tied

hedging, payer 3s (2.703%), receiver 5s (2.774%), payer 6s (2.7925%)

- Eurodollar futures, weaker, short end outperforming as 3M LIBOR pace slows

+0.0038 to 2.3246%; recent Block buy 2k Reds -0.0275.