*** Rates traded weaker, but off....>

US TSYS SUMMARY: *** Rates traded weaker, but off second half lows, strong

risk-on move with equities surging late (emini +33.0, 2723.25). Fear of metals

import tariff blowback, US Pres Trump not backing down on intentions, possibly

doubling down amid talk of taxes on auto imports didn't have same effect as late

last wk. Gold weaker (XAU 0-3.39, 1319.36); Crude stronger (WTI +1.40, 62.65)

* Concerted risk-on move extending ranges in second half as Tsy futures extended

session lows, long end leading move; US$ index +.135 at 90.070 while Yen gains

vs. USD 106.206 vs. early low of 105.35. 

* Flow included fast$ and prop selling 5s and 10s, bank and real$ sellers 10s

and 30s, modest deal-tied flow in front end, early paying in 2s and 3s followed

by receiving in 5s and 10s, light flattener unwinds in 2s10s and 5s 30s, FX-tied

sales in intermediates-long end.

* Eurodollar futures weaker by the bell, at/near session lows w/Blue-Golds

underperforming. Short end under heavy sell pressure following jump in 3M LIBOR

this morning (+0.0097 to 2.0349%, +0.0690 last wk).

Late ylds: 2Y 2.242%, 3Y 2.404%, 5Y 2.645%, 7Y 2.807%, 10Y 2.881%, 30Y 3.152%