US Tsys are trading mixed heading...>

US TSYS SUMMARY: US Tsys are trading mixed heading into NY session with the

yield curve modestly steeper as the very short-end of the curve edges higher,

but the long-end slips lower. 10-yr Tsy yield is 0.7bp higher at 2.833% while

2s/30s is 1bp wider.

- There has been little seen to direct markets since Wednesday's close with RBZ

leaving rates on hold, German region flash inflation coming in pretty much

in-line with expectations and Eurozone consumer confidence remained unchanged in

June at -0.5

- US Tsys slipped lower during Asian session though and then extended losses at

start of European session, weighed by a block sell in TYU8 @ 120-08+ in 7.55k.

Tsys recovered throughout the rest of the European morning session to and TYU8

currently trades at 120-11+.

- Euro$ strip has steepened slightly as white and red contracts are steady to

0.5 tick lower but greens & reds 1 tick lower.

- 2-yr swap spreads have widened by 1.4bps, however breakevens are little

changed despite continued bid in oil price.