Tsy trading lower after a slight....>

US TSYS SUMMARY: Tsy trading lower after a slight rebound, strong volume (TYU

1.14M), curves continued bear steepening throughout the morning as fast$

flattener unwound in 2s vs. 10s and 30s, but have since dipped off session

highs. Tsy ylds higher with 10YY breaching 3% for first time since mid June but

have since retracted, currently (2.997%) 98-30.5 vs. (3.014%) day high; 30YY

3.118%, futures continued to extend session lows today as ADP came in stronger

than expected (219k vs 186k exp), Tsy supply increased, US$/Yen fell back in

line with the 10YY, mild deal-tied flow in the mix, FX acct selling; dealer

sales cash 10s and 30s; ISM manufacturing and construction spending both came in

much weaker than expected, (58.1 vs 59.4 exp) and (-1.1% vs +0.3% exp);

-DXY +.092 to 94.646; US$/Yen softer, -.16 to 111.70 (112.15H/111.64L); equities

lower (emini -4.50, 2812.5); gold softer (XAU -5.52, 1218.73); West Texas crude

lower (WTI -0.91, 67.85).

-Tsy cash/ylds: 2Y 99-28.5 (2.678%), 5Y 99-13.5 (2.873%), 10Y 98-30.5 (2.997%),

30Y 100-03 (3.119%).