- Gary Cohn's resignation has.......>

US TSYS SUMMARY: - Gary Cohn's resignation has underlined Trump's desire to

impose tariffs globally provided a solid bid to Treasuries in early Asia and has

imparted a 1% decline to the S&P mini index future.

- A normally dovish Fed Board member, Lael Brainard proved a turn-coat in a

speech given overnight talking of economic headwinds turning to tailwinds and

speaking of the need for higher rates. This took some of the shine from the

Cohn-inspired UST rally.

- Yesterday's corporate issuance provided a highlight with the much touted CVS

9-part issuance launched: $40bln ($120bln book). Swap spreads have widened today

as the issuance threat has now receded. 2-3Y spreads are 0.5bp wide, 10Y up

0.25bp.

- The 2Y UST was last -1.6bp to 2.23% and 10Y down 3.1bp at 2.855%. While the

2-10Y is flattening, the 10-30Y is steepening. At 08:24GMT there appeared to be

a large USD237.7k+ DV01 5Y-30Y steepener at 21.3bp. The 5-30Y swap curve is

exceptionally flat at present.

- Today's data is headlined by the ADP employment report.