*** Post data reaction, strong.......>

US TSY FUTURES: *** Post data reaction, strong initial bid on the lower than

expected number for November drew algo-related buying across the board. Still a

passing number at +155k (vs. +190k est) and rock-bottom unemployment figure at

3.7%.

- But why the sell-off? the payroll number was not strong enough to "ensure the

Fed goes 3 times next year," one desk said. The idea behind buying the ten year

note was that excessive fed rate hikes was gonna lead to a recession in 2020."

This morning's number alleviates these concerns somewhat, spurring fast$, prop

and foreign acct selling in intermediates to long end. Short end still bid as

Dec hike still expected.

- Price action moderating, clawing off session lows, curves mixed w/5s30s +1.39

at 42.13. Option trade choppy, implied lower while bid for low delta calls

continues.

- On a separate note, West Texas crude (WTI) surged to 54.11 on back of OPEC

production cut headlines.