10-Year yields topped 3.20% for.....>

US TSYS SUMMARY: 10-Year yields topped 3.20% for the first time since 2011

Thursday, and the entire curve remains under pressure, though off worst levels.

- Downside pressure maintained from Thursday's strong ADP jobs and nonmanuf PMI

figures, but most notably from Fed Chair Powell's statements that "very

accommodative policy is no longer appropriate in the current environment, which

calls for interest rates to "very gradually" move toward neutral. We may go past

neutral, but we're a long way from neutral at this point."

- The Dec 18 T-Note future is down 12.5/32 at 117-235, having traded in a range

of 117-195 to 118-00.

- Curve bear steepening: 2-Yr yield up 1.6bps at 2.8884%, 5-Yr up 2.4bps at

3.0689%, 10-Yr up 3.4bps at 3.2154%, and 30-Yr up 4.5bps at 3.3798%.

- 30-Yr notably broken out of 3-decade downtrend (see POV earlier).

- Real yields rising, 10-Yr at highest since 2011 at 1.0449%.

- Eurodollar strip weaker too, Reds through Blues off 6.0-6.5 ticks.

- Some data ahead, including factory orders and jobless claims; FOMC VC Quarles

to speak in St. Louis at 0815EST.