Treasuries are weaker Friday but....>

US TSYS SUMMARY: Treasuries are weaker Friday but have clawed back some losses,

with an interview with Fed VC Clarida offering a modest lift.

- Sep 10-Yr futures (TY) last down 12.5/32 at 127-21.5 (L:127-17.5/H:128-00.5)

- Clarida on BBG this morning basically stuck to Powell's line Wednesday. No

single data point FOMC looking at; Fed willing and able to act if appropriate;

cited international factors (`crosscurrents`).

- Some taking a cue off the question of linear/nonlinear impact of Funds rate

cuts as meaning one-off 50bps cut not off the table = dovish, not so sure but

2-Yr UST yields 3+bps lower since he started speaking, curve steeper.

- The 2-Yr yield is up 0.3bps at 1.7802%, 5-Yr is up 1bps at 1.7906%, 10-Yr is

up 0.8bps at 2.0367%, and 30-Yr is up 0.2bps at 2.5422%.

- ED strip off 4-6 ticks, losses focused on Reds.

- St Louis Fed's Bullard gave an explanation of his dissent in favour of a cut

this week; no surprises (centring around low inflation not being transitory).

- Later we get Fed`s Brainard & Mester (1200ET) and Daly (1500ET) appearing.

- Flash PMIs and Existing Home sales highlight the data docket.