The Tsy space moved lower on Friday,...>

US TSY/RECAP: The Tsy space moved lower on Friday, with the curve running

steeper by the bell.

- The space decoupled from the US$.

- There was a morning sell off on word that the BOJ is considering modifying

yield curve and rate targets, "allowing for a natural rise in Long-Term rates."

- This was followed up by comments from U.S. President Trump "ready" with

additional tariffs on $500bn worth of Chinese good, which backstopped rates for

a while.

- Otherwise it was a light data day, with no reaction to Fed's Bullard ahead of

the media blackout that went into play over the weekend.

- Fast money unwound flatteners in 2s10s and 5s30s, with a huge buyer of >150k

EDU8 (70k Block) at 97.555.

- Focus this week falls on U.S. Q2 GDP, due Friday, ahead of the Fed's MonPol

decision next week.

- T-Notes last at 119.31, U.S. 10-Year cash Tsy yields closed at 2.893%.