*** Rates finish mixed, well off....>

US TSYS SUMMARY: *** Rates finish mixed, well off first half highs with long end

outperforming; generally quiet session after opening weaker with a risk-on tone.

- US$ index weaker (DXY -.454, 89.626); equities firmer (emini +8.0, 2726.5);

gold stronger (XAU +14.45, 1334.59); West Texas crude little softer (WTI -0.06,

62.51).

- Tsys opened weaker w/EGBs, near bottom end of range on decent volume

(TYM>350k), carry-over risk-on tone at the moment amid headlines that N.Korea

can discuss de-nuclearisation if regime safety agreed.

- Tsys reversed early weakness, traded higher prior to weaker factory order data

-1.4%, just below the -1.3% exp, with durable goods orders rev up slightly to

-3.6%. Nondurable goods orders +0.8% on petro and coal products.

- Muted two-way trade from late morning on, Tsys paring gains in the second

half.

- Corporate issue highlight: $40B (vs. $120B book!) CVS 9-Part CVS Launched,

third largest issuance on record. 

Late ylds: 2Y 2.246%, 3Y 2.413%, 5Y 2.645%, 7Y 2.807%, 10Y 2.877%, 30Y 3.144%