*** Strong finish for rates, Tsy....>

US TSYS SUMMARY: *** Strong finish for rates, Tsy futures made new session highs

as equities made new lows following steel/aluminum tariff intentions by US Pres

Trump, Europe and Canada headlines planning countermeasures, spurring late

risk-off move.

- US$ index reversed gains on tariff items (DXY -.310, 90.303 vs. 90.932H);

equities lower but off lows (emini 2681.0 late vs. 2658.5L); gold weaker (XAU

-0.96, 1317.42); West Texas crude little weaker (WTI -0.24, 61.40).

- Choppy session with several round trips in rates from steady to broadly higher

in long end. Tsys actually pared early gains post data w/inflation at 1.5%,

equities pare losses/rates reverse post consumer confidence rally move after

ISM, construction spending data, focus back to Fed chair Powell as he made

second Mon/Pol testimony.

- Powell states can't be "too aggressive" in tightening policy w/inflation still

below target, Dudley adds four hikes WOULD be gradual. Heavy two-way flow prop

and real$ selling in 10s, 30s earlier, bank and real$ 2-way in belly-long end

- Late ylds: 2Y 2.214%, 3Y 2.360%, 5Y 2.581%, 7Y 2.738%, 10Y 2.810%, 30Y 3.089%