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T-Notes went out at best levels........>

US TSY/RECAP: T-Notes went out at best levels following a mixed start, with the
belly of the curve outperforming in cash trade. The bid was helped by relatively
dovish comments from Fed's Williams: no need to put pedal to metal amid "lack of
inflationary pressure" & patience as the "econ still has room to run." A miss on
ADP employment data also supported the space, ahead of tomorrow's NFP release.
- Late headlines pointed to President Trump hinting to the WSJ that a trade
fight with Japan "could be next," but upon second glance the article was less
inflammatory than the headlines, although T-Notes still made marginal fresh
highs on the day following the story.
- Corp. issuance was dominated by Cigna, set to issue >$22bn (10-tranche deal
noted late last week), which made for some early curve steepening.
- The labour market report headlines on Friday, with Fed's Mester, Rosengren &
Kaplan due to speak. Participants are also on the lookout for any U.S.-China
trade rhetoric ahead of the upcoming scheduled imposition of additional U.S.
tariffs on China.
- T-Notes last 120.07, U.S. 10-Year cash Tsy yields closed at 2.873%.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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