Tsys finished higher on Friday, with...>

US TSY/RECAP: Tsys finished higher on Friday, with the belly outperforming.

Fed's Clarida sounded more cautious about the economic outlook, before a WSJ

interview with Fed's Harker crossed late in the day noting that "he isn't ready

to support the central bank raising short-term interest rates again next month,

given the modest outlook for inflation." N.B. Harker doesn't vote until 2020.

- Earlier Friday U.S. Pres Trump stated that China will make a deal. Trump also

announced he had finished, but not submitted, answers to Mueller probe

questions. That was before risk-off came back to the fore after U.S. off'ls

noted that the "Pres was simply expressing optimism about ongoing negotiations

with the Chinese when he said the US may not have to impose additional tariffs."

- The weekend saw hawkish trade comments from U.S. VP Pence re: China, while the

APEC summit failed to result in a common communique, with trade war matters

dividing the room. T-Notes ticking higher early this week.

- Durable goods & flash PMIs highlight the U.S. economic docket during this

holiday shortened week, with Fed's Williams due to speak on Monday.

- T-Notes last 119.09+, U.S. 10-Year cash Tsy yields closed at 3.063%.