Quiet restart for Tsy futures..........>

US TSY/RECAP: Quiet restart for Tsy futures. T-Notes finished at/just off

session highs Thursday, after another strong rally, blowing past early overnight

highs after ISM failed to meet exp. by a large margin (54.1 vs. 57.8). 5-Year

paper led the way with the short end and belly outperforming longer dated

counterparts. Equities struggled on the back of the weak ISM, Apple's Q1

guidance cut and post-FX flash crash uncertainty. Tsys had pared gains after ADP

figure came out strong (+271K), even with Nov down revision to 157K vs. 179K.

Drawdown in inflation expectations spurred heavy buying in Eurodollar futures.

- Fast-money & prop a/c's faded the post ADP move, buying dip in 5s-10s prior to

ISM move, real-money, bank portfolio and levered a/c's were buying across the

curve following ISM miss. Decent swap-tied buying in shorts to intermediates vs.

deal-tied hedging as corp issuance returned.

- NFPs, ex-Fed Chairs Bernanke & Yellen interviewing current Fed Chair Powell &

a meeting between Trump and congressional leaders provide the highlights Friday.

- T-Notes last 123.02+, U.S. 10-Year cash Tsy yields closed at 2.553%.