*** Risk on, Tsys extend overnight.....>

US TSY FLOWS: *** Risk on, Tsys extend overnight lows after better than expected

Sep ADP (+230k vs. +184k whisper), Aug revisions more moderate; curves bend

steeper. Large sale -30k EDZ9 post data down to 96.835.

- Risk-on tone kicked off overnight as sovereign spds narrowed vs. Bunds,

notably BTP 5y -28.0 now. Global equities firmer.

- Flow coming into the session included real$ buying 10s, fast$ and bank

portfolio flatteners in 2s and 5s vs. 10s. Prop and real$ sellers in 10s-30s

post ADP, large volume in TYZ last few minutes from 118-21 to -20; large sale

-30k EDZ9 96.835.

- Some debate over the strength of this morning's Sep ADP, discounting the

+230k. Citing ADP vs. BLS methodology: "Unlike the BLS, which tracks employees

paid during the month, the ADP methodology includes employees who are active.

These are chosen over paid because employees may receive more than one paycheck

for incentive pay or bonuses. This would result in multiple records and,

therefore, the inclusion of such records would overstate the actual number of

employees on a company's payroll."