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*** Rates trade lower/equities......>

US TSYS SUMMARY
US TSYS SUMMARY: *** Rates trade lower/equities manage rebound as political
concerns continue to unduly affect markets. Potential for tariff "carve-out" for
Canada and Mexico pushed Tsy ylds higher, equities bouncing after prior
headlines that US Pres Trump is expected to sign steel/aluminum tariffs by
Friday. Tariffs remained sore point for some, less than 24 hours after Gary Cohn
Pres Trump's econ advisor resigned over issue.
- US$ index lower (DXY -0.015, 89.603); equities firmer/welll off lows (emini
+2.25, 2726.25); gold weaker (XAU -10.19, 1324.46); crude weaker/off lows (WTI
-1.33, 61.27 -- sold off on headlines Exxon looks to rebuild output).
- Initial risk-off carry over after Cohn resignation, Tsys pared gains post
better than exp ADP gain of 235k, Jan up-rev'd to 244k from 243k.
- Choppy two-way trade/narrow range. Sources noted crude lead midday equity
sell-off, concern over technical break of 60.50, potentially spurring heavy
selling in equities. Tsys bounced on move, early risk-on tone has flipped to
risk-off. Late ylds: 2Y 2.254%, 3Y 2.419%, 5Y 2.649%, 7Y 2.809%, 10Y 2.883%, 30Y
3.153%

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