Tsys weaker by the bell, near.......>

US TSYS SUMMARY: Tsys weaker by the bell, near early session lows, tracking EGBs

and rebound in US$ off lows. 

- US$ index rebounds/mildly higher (DXY +.084, 90.224); equities little higher

(emini +2.25, 2757.25); gold weaker (XAU -3.27, 1313.01); West Texas crude

stronger, bouncing midday on Venezuela output drop chatter (WTI +1.11, 62.30). 

- Quiet session overall, little react to second/third-tier data, position

squaring, profit taking on curve flatteners ahead next wk's FOMC policy annc,

.25bps hike expected Wed.

- Swap spds at/near session wides by the bell/spd curve flatter w/short end

reversing Thu's move. Better front paying in 2s and 5s late and sporadic

flatteners in second half, deal-tied flow in the mix.

- Eurodlr futures Lower across strip, near low end of range. While long end

underperformed, short end came under heavy pressure around midday. Front

quarterly EDH8 expires, EDM8 and EDU8 hammered to new session lows ahead next

wk's FOMC.

- Late ylds: 2Y 2.291%, 3Y 2.443%, 5Y 2.643%, 7Y 2.780%, 10Y 2.846%, 30Y 3.080%