Risk-on tone carried over......>

US TSY FUTURES CLOSE: Risk-on tone carried over from the week opener, rates

weaker all session as equities hit new all-time highs (ESZ9 3085.75) early in

the session. But the correlation broke down by midmorning -- Tsys remained

weaker even as equities reversed gains as focus on US/China trade (or fears of

collapse) outweighed better than expected ISM PMI data. Yld curves bear

steepened w/3M10Y making new nine month highs. Update:

* 3M10Y  +5.884, 28.909 (L: 21.608 / H: 31.178)

* 2Y10Y  +3.905, 22.983 (L: 19.259 / H: 23.386)

* 2Y30Y  +3.753, 71.284 (L: 67.724 / H: 72.106)

* 5Y30Y  +0.839, 67.502 (L: 66.456 / H: 69.31)

Current futures levels:

* Dec 2-Yr futures down 2/32  at 107-18.875 (L: 107-17.38 / H: 107-21.625)

* Dec 5-Yr futures down 9.5/32  at 118-15.75 (L: 118-13.25 / H: 118-27)

* Dec 10-Yr futures down 19/32  at 128-31.5 (L: 128-27.5 / H: 129-21)

* Dec 30-Yr futures down 1-16/32  at 157-31 (L: 157-25/ H: 159-20)

* Dec Ultra futures down 2-11/32  at 184-3 (L: 183-25/ H: 186-25)