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%.