Quiet end to a hectic week, short......>

US TSY FLOWS: Quiet end to a hectic week, short end pricing in 25bp cut at the

end of month, small chance of 50bp cut likely to die on the vine if markets

maintain status quo for the next two weeks. Next Monday will be a quiet start,

mkt focus focus on Tuesday's heavy data (retail sales) and Fed speakers before

they go into blackout a week from tomorrow. 

- Rates opened weaker on thin volume, sources reported better selling in 5s and

10s from prop and real$. Pretty quiet chop in post-PPI trade, rebounding after

initial sell-off with several rounds of position squaring keeping levels

anchored in first half.

- Long end rates extended lows for the week early, bounced midmorning and have

inched higher ever since, light overall volume by the bell (TYU just over 1M).

Yld curves mostly steeper again, 3M10Y scaling back after surging 20bp off

inverted lows since Wednesday, breached positive territory briefly earlier -

first time since May 23.

- The 2-Yr yield is down 2.6bps at 1.8369%, 5-Yr is down 3bps at 1.8626%, 10-Yr

is down 2.6bps at 2.1114%, and 30-Yr is down 2.2bps at 2.6378%.