Tsy trading mildly higher into......>

US TSYS SUMMARY: Tsy trading mildly higher into the bell, near the top of the

range with strong volume (TYZ 1.52M), curves flattening. Light data today led by

vehicle sales, Redbook retail sales, and ISM-NY current conditions; Tsy largely

ignored all of it as they moved in a tight range today;

-Comments from Italy's Di Maio today led to 10Y note to hit highs; Headlines

included; "*DI MAIO: UNELECTED EU COMMISSION PRETENDS TO LECTURE ITALY GOVT-bbg"

and "*DI MAIO: WE WILL GO AHEAD W/ BUDGET PLAN DESPITE THREATS-bbg"

-Feds Powell spoke today stating "NEED GRADUAL HIKES TO BALANCE INFL RISKS" and

"SEE BOTH UPSIDE, DOWNSIDE INFL RISKS"

-US$ higher DXY +.166, 95.464 (95.263L/95.744H), $/Eur lower -0.0027 at 1.1551,

$/Yen down -.32 113.61; equities slightly lower (emini -1.50, 2928.50 vs.

2936.00H); Gold strengthened (XAU +13.99, 1203.02); Oil fell (WTI -0.17, 75.13).

-Tsy cash/ylds: 2Y 99-28.25 (2.807%), 5Y 99-22.25 (2.939%), 10Y 98-16 (3.050%),

30Y 96-04.5 (3.201%).