Rates trading mostly higher by......>

US TSYS SUMMARY: Rates trading mostly higher by the bell, near highs after a

weaker open, curves flatter. Quiet start to wk, low volume (TYM appr 1M) w/much

of Asia out on holidays (China Mon & Tue for Labor Day, Japan closed Mon, Thu

and Fri for public holidays). Tsy 10Y yld -.013, 2.9438%.

- US$ index mildly higher (DXY +.212, 91.754; US$/Yen 109.18); equities

weaker/off early highs (emini -11.0, 2660.5); gold weaker (XAU -6.83, 1316.52);

West Texas crude stronger (WTI +0.41, 68.51), rebounding on increased geo-pol

tensions in mid-East as Israeli forces strike Syrian targets, to hold conf

tonight on Iran.

- Geo-pol/mid-East tensions leant to risk-off bid in rates, cross-mkt support

from EGBs as Bunds rallied as well; month-end buying, two-way from fast$ in

short end, corp deal-tied hedging, rate receiving in 2s, 4s and 5s, curve

flatteners/steepener unwinds in 2s and 5s vs. 10s.

- Limited react to data on tap includes personal income (0.3%), US$ PCE (0.2%),

and Apr MNI Chicago PMI (57.6). FOMC policy annc on Wed, Apr NFP on Fri.

- Late ylds: 2Y 2.484%, 3Y 2.612%, 5Y 2.785%, 7Y 2.897%, 10Y 2.934%, 30Y 3.095%