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Tsys ylds continue to recede from...>

US TSYS SUMMARY
US TSYS SUMMARY: Tsys ylds continue to recede from late last wk's multi-year
highs (10YY 2.955, -.0219), largely in reaction to widening in sovereign
peripherals (Spain 10Y vs. Bunds +15, outpacing Italy +13 and Portugal, +12,
Turkey only +6.7, so they have that going for them). Decent volumes belie thin
mkts on shortened pre-holiday weekend.
- USD index bouncing after some overnight chop (DXY +0.186, 93.961) US$ vs. Yen
+0.17, 109.42; stocks steady (emini +0.00, 2727.5); gold little firmer (XAU
+0.60, 1305.21). West Texas crude hammered last 3 hours (WTI -1.59 to 69.12) on
OPEC headlines they looking to boost supply by ending excessive cuts.
- Asia steady to weaker sideways trade through to London crossover, real$
selling in intermediates,cross-current positioning ahead extended holiday
weekend, option-tied hedging ahead June Tsy expiration. Tsys gaining during
London hours, better prop and real$ buying 10s and 30s. Swaps spds steady/mildly
tighter in short end, flow includes bank paying in 5s and 2s10s steepeners.
- Tsy cash/ylds: 2Y 99-31.7 (2.500%), 5Y 99-24.5 (2.799%), 10Y 99-09 (2.957%),
30Y 100-12 (3.104%)

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