Following a mixed start, Tsys..........>

US TSY FLOWS: Following a mixed start, Tsys bumping at/near session highs after

midday, bid after dovish comments from NY Fed Pres Williams: no need to put

pedal to metal amid "lack of inflationary pressure" and patience in "economy

that still has room to run". Lower (slightly) than exp ADP private empl (+163k)

also spurred early short covers. Note, Aug emply data has historically missed to

downside 19 of past 20 years! Current dealer mean est +195k vs. whisper around

+179k. US$ index softer DXY -.051, 95.133 (94.933L/95.208H), $/Eur -0.0008 at

1.1622, $/Yen -.71 110.82; equities weak (emini -12.0, 2876.25); Gold firm (XAU

+2.74, 1199.69); West Texas crude weak again (WTI -0.89, 67.83).

- Annc Cigna to issue over $22B est. debt across the curve (jumbo 10-tranche

deal noted late last week) helped steepen curve early amid flurry early

sale/hedging. Cautious risk-off tone ahead Fri's data, still waiting to hear

whether Trump admin will hit China w/more tariffs ($200B threatened last wk),

also as Eq's offered on back of weak semiconductors, FANG shares. Otherwise

moderate positioning, option hedging, FX-tied buying. Tsy cash/ylds: 2Y 99-31.25

(2.633%), 5Y 100-01.25 (2.740%), 10Y 100-00.5 (2.871%), 30Y 99-00 (3.050%).