Tsy trade was muted, as T-Notes stuck to....>

US TSYS: Tsy trade was muted, as T-Notes stuck to a tight range, just off of

Thursday's late session highs, after a blip lower tracking Aussie paper.

- T-Notes finished Thursday at best levels following a mixed start, with the

belly of the curve outperforming in cash trade. The bid was helped by relatively

dovish comments from Fed's Williams: no need to put pedal to metal amid "lack of

inflationary pressure" & patience as the "econ still has room to run." A miss on

ADP employment data also supported the space, ahead of Friday's NFP release.

- Late headlines Thursday pointed to President Trump hinting to the WSJ that a

trade fight with Japan "could be next," but upon second glance the article was

less inflammatory than the headlines, although T-Notes still made marginal fresh

highs on the day following the story.

- The labour market report headlines on Friday, with Fed's Mester, Rosengren &

Kaplan due to speak.

- The Eurodollar strip is largely unchanged, with some interest seen in the EDZ8

97.50 calls overnight.

- T-Notes last 120.06+, U.S. 10-Year cash Tsy yields last 2.875%.