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Tsys w/mild risk-on tone, carry.....>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys w/mild risk-on tone, carry over from London trade w/Bunds
and Gilts weaker as well, sovereign spds tighter, equities firmer, crude hitting
multi-year highs. Relative quiet into shortened pre-holiday session, moderate
futures volume (TYU<340k), light data w/auto sales, factory orders, Redbook
retail sales. US$ index little softer (DXY -0.206 to 94.665; US$/Yen -.05
110.85); equities firmer/near highs (emini +11.5, 2738.75 vs. 2739.75H); gold
firmer (XAU +4.75, 1246.75); West Texas crude climbs to highest lvls since late
2014 Fri (WTI +.90, 74.84, 74.93H).
- Asia, quiet start Tsys opened largely steady to late NY lvls, some FX-tied
selling couple hours in as US$/Yen jumped briefly, unwound/but repeated again
going into London trade, US$/CNY also surged then reversed around PBOC comments
re: stable/balanced exchange rate. Two-way flow in belly w/CB buyers vs.
insurance portfolio selling. London, rate support faded, moderate risk-on
selling as eq's climbed, fast$ two-way in short intermediates. Tsy cash/ylds: 2Y
99-28.5 (2.553%), 5Y 99-11 (2.765%), 10Y 99-31.5 (2.875%), 30Y 102-16.5
(2.996%).

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