Choppy day for rates after weaker......>

US TSY FLOWS: Choppy day for rates after weaker than expected Nov employment

number (+155k vs. +190k expected; whisper +215k). Initial program-driven rally

across curve short lived, sharp long end sold off just as quick.

- Payroll number not strong enough to "ensure the Fed goes 3 times next year,"

one desk said, w/"idea behind buying the ten year note was that excessive fed

rate hikes was gonna lead to a recession in 2020." Fri's number alleviated

concerns somewhat, spurring fast$, prop and foreign acct selling in

intermediates to long end. Short end bid as Dec hike still expected.

- Fed Brd Govs' member Brainard hit podium before midnight black-out through Dec

20, said "gradual path" still warranted over near term while labor mkt

indicators strong, unemployment low, and yr/yr wage growth topped 3% in recent

months, all of which she called "welcome developments."

- Late risk-off buying as equities extended session lows, sources report decent

sell-program last few minutes (>1150 stocks), SPX -55.0 at 2636.0.Sources note

prop and fast$ buying in 10s-30s. Tsy cash/ylds: 2Y 100-02.5 (2.709%), 5Y 100-26

(2.698%), 10Y 102-09.5 (2.856%), 30Y 104-11.5 (3.148%).