Treasuries traded mixed Friday......>

US TSYS SUMMARY: Treasuries traded mixed Friday with wide swings as mixed data

on balance nudged odds of a Fed cut next week a little lower.

- Forecasts for a June 19 hike dipped from 28% Thursday to below 20% post-retail

sales and industrial production data today (those boosted dealers` Q2 GDP

estimates closer to 2%, near/above Fed's L-T potential est.).

- Catalysed by all-time lows in UMich inflation exp., odds then recovered to

24.2%, slightly lower than last week's close (25%, per CME FedWatch).

- Decent volumes across the board in Tsy futures (TY>1.3mln as of 1500ET),

though action petered out later in the afternoon.

- A bit of bear flattening in the curve, with the short-end weaker. The 2-Yr

yield is up 1.1bps at 1.8467%, 5-Yr is up 0.6bps at 1.8441%, 10-Yr is down

0.4bps at 2.0908%, and 30-Yr is down 0.7bps at 2.5929%.

- With Friday`s data behind us, all that is left is lesser data (Empire

Manufacturing, Housing Starts) prior to the FOMC decision next Wednesday.

- Early next week MNI will provide our usual full FOMC preview including 20+

sell-side analysts' takes on the decision.