T-Notes had a look at their Thursday lows...>

US TSYS: T-Notes had a look at their Thursday lows at the re-open, on the back

of confirmation that the U.S. Tsy will issue 20-Year bonds in H120, following

input from market participants. The Tsy will release further details on Feb 05.

Elsewhere, U.S. President Trump formally nominated Shelton & Waller for seats on

the board of the Federal Reserve, as expected. Contract last -0-02 at 129-03,

just off early lows.

- To recap Thursday's price action, strong retail sales data (although back

month revisions took the shine off the print) and a strong headline Philly Fed

survey print allowed the space to erase early gains, with the belly of the curve

underperforming at the margin.

- Corporate issuance also continued to weigh on the space.

- Flow-wise, sources reported better fast and real money selling on the

data-inspired move, with prop buying in the intermediates showing up after,

before a fresh round of longer duration selling crept in. A TU/FV steepener

block also showed up. Profit taking in TYG0 129/130 call spds and fresh long

TYG0 128.5/129 put spds were also seen on screen.