Treasuries ended Friday weaker,.....>

US TSYS SUMMARY: Treasuries ended Friday weaker, steeper, but well off the day's

price lows as mkt digested stronger than expected 209K July nonfarm payroll

jobs, 4.3% jobless rate, 0.3% Avg Hrly Earnings gain in fairly calm fashion. 

- Treasuries slid initially on jobs after weaker NY open with 2way flows by

real$ and hedge funds in early selloff, but also brief foreign central bank

buying in short end; cross-current flow in 5Y, 10Y Tsys. 

- Tsys then saw accelerated sales by prop, real$ and program accts in 5s, 10s

and 30s; also FX-tied selling amid US$ rebound vs. majors, dollar weakness "way

overdone" one desk adds. Tsys saw initial 5/30Y curve flatteners then some

profit-taking and more unwinds. Cash Tsy 2/10Y, 2/30Y, 2/5Y curves saw recent

steepeners. Deal-tied hedging absent going into the weekend. Tsys then saw late

short-covering and dip buying. 

- Options had heavy limited upside call fly buying, EDZ 96/97/98 call fly

betting on no more rate hikes for '17 as well as narrowing of FRA/OIS from

mid-teens. 

-TSYS 3pm ET: 2Y 1.359%, 3Y 1.508%, 5Y 1.822%, 7Y 2.086%, 10Y 2.267%, 30Y 2.844%