Friday provided a quiet end to the.....>

US TSY/RECAP: Friday provided a quiet end to the week. There was an early

risk-off bid on renewed Italy angst after Thursday's budget draft, as BTPs moved

wider vs. Bunds. The month-end bid in the long-end evaporated as equities

recovered, with the curve running steeper on the day.

- Sources noted fast-money & prop a/c's selling intermediates.

- Late block buys were noted in futures, +12k FVZ 112-15.5, +4.5k TNZ 126-20.

- There was chatter re: deal-tied sales ahead of potential Comcast issuance

later this week.

- After hours Fed's Williams noted that he supports further gradual rate

increases, although he no longer sees the need for explicit forward guidance and

played down the importance of the "neutral" rate. Williams went on to note that

the Fed is closer to conducting normal MonPol, and it has achieved its goals of

maximum employment and price stability. 

- Futures have eased a touch in early dealing this week on the back of reports

that a NAFTA deal is close (deadline is at 00:00 ET).

- T-Notes last 118.22, U.S. 10-Year cash Tsy yields closed at 3.061%.