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

US TSY/RECAP: Friday provided a quiet end to the week for the space, as Tsys

traded weaker all day, extending the move after BTP/Bund spds reversed earlier

widening on the back of comments from EU's Moscovici sounding a little warmer

re: Italy, while source reports from close to Italy's 5-Star & Lega parties

pointed to the potential for a 2.1% deficit to GDP target (denied by the leader

of 5-Star over the weekend). That being said the risk-on tone tempered in the

second half of the day as equities scaled back gains on a couple of large

program sales, with the tech and semiconductor areas heavy.

- Heavy two-way flow in EDZ8 Eurodollar futures was observed, strong buying

early as 3-Month LIBOR didn't set as high as anticipated. FRA/OIS gapped 2.0

tighter -- but gradually retraced move in second half with EDZ8 trading lower

(total EDZ8 volume >610k).

- Limited to no reaction to weekend news flow in early dealing this week.

- Friday's GDP release headlines the U.S. docket this week, with a plethora of

Fedspeak due & one eye on issuance, headlined by 2-, 5- & 7-Year supply.

- T-Notes last 118.00, U.S. 10-Year yields closed at 3.192% on Friday.