Treasuries have maintained..........>

US TSYS SUMMARY: Treasuries have maintained Thursday's bullish momentum, as

markets continued to weigh US President Trump's abrasive trade rhetoric and

volatility in emerging markets.

- Yields lower across the curve, with the belly outperforming. 2-Yr yields down

0.8bps at 2.641%, 5-Yr down 1.2bps at 2.738%, 10-Yr down 1.1bps at 2.844%.

- Risk aversion has picked up this morning as Trump Thursday in a Bloomberg

interview threatened to pull the US out of the WTO and said the EU would not

escape his ire over trade for long. Separately he indicated he supported $200bln

in tariffs on China to be announced as soon as next week.

- After a sharp sell-off in EMFX this week, which has helped fuel general risk

aversion, TRY, MXN and ZAR all trade slightly higher, but still have a long way

to go before recent damage is repaired.

- The eurodollar futures strip is stronger, Jun19 to Dec22 up 1.5-2.0 ticks.

- Focus turns to Chicago PMI, Michigan revisions and any update on

US-Canada-Mexico trade negotiations, with a potential deal with Canada

potentially forthcoming today.