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*** Tsys trading weaker, paring.....>

US TSYS SUMMARY
US TSYS SUMMARY: *** Tsys trading weaker, paring gains, Tsys following Bunds
lead over last couple hours; decent/heavier volume in futures again (TYH>50K)
tapering off early week highs. US$ generally stronger vs. majors, equities
weaker (emini -12.0, 2682.25), gold firmer (XAU +0.39, 1324.5), West Texas crude
softer (WTI -0.34, 63.05).
- Asia, Tsys opened steady to Tue's late levels, gradually rebounding into
London hours, early fx-acct buying, two-way in front to intermediates w/bank
buying 5s, pre-auction selling 10s.
- London, carry-over support, Tsys posted mild gains by midmorning but reversing
gains over last couple hours, following Bunds lower. Sources reported real$
sales 3s, bank portfolio selling 2s, 10s and 30s earlier.
- Swaps, spds running mixed, spd curve flatter w/short end leading move. Sources
note deal-tied hedging, real$ paying in long end. Recent 5s/10s flattener,
$191.8k 3s5s10s fly, receiving belly.
- Eurodollar futures, trading weaker, decent front quarterly sales after 3M
LIBOR set +0.0092 to 1.7999%. Heavy Apr Fed funds volume >100k

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