Green light for risk-on going into.....>

US TSY FLOWS: Green light for risk-on going into weekend. More than making up

for Thu's reversal, Tsy futures selling off on U.S. budget resolution passage,

stronger global eq's and rising chances of Dallas Fed Powell as next Fed chair

(58%, up 19% after Pres Trump meet w/Fed Chair Yellen late Thu). Emini +5.5 at

2566.0, gold weaker (-7.24, 1282.85), oil weaker (WTI -0.41, 50.88). Current 10Y

yld 2.363%, 30Y yld 2.873%.

- Asia, Tsys opened near steady, selling off after U.S. Senate adopted budget

resolution. Sources reported brisk selling across the curve, fast$ and regional

bank selling in 10s and cash 5s and 10s.

- London, Tsys held lows after budget news, choppy trade with some fast$ and

prop acct buying/profit taking on lows, mild option-tied hedging amid heavy

low-delta put buying again, FX-tied selling as US$ rebounds vs. Yen.

- Swaps, spds running mostly tighter, spd curve flatter amid light rate paying

and deal-tied hedging in 2s and 5s, fast$ payer unwinds in 10s.

- Eurodollars, trading weaker across the strip, near overnight lows on moderate

volume. Heavy Dec7 and 1y midcurve Dec8 put buying.