Tsys have been underpinned by broader.......>

US TSYS: Tsys have been underpinned by broader risk-off flows thus far, with

T-Notes trading just off session highs and the yield shift relatively parallel

across the curve at writing. Some pointed to the breakdown of the latest Nikkei

manufacturing PMI out of Japan, which noted that the "survey does bring some

cautious undertones to the fore, however. Export orders declined at the fastest

pace in >2 years, while total demand picked up only modestly. Confidence also

continued to fall, a 7th straight month in which this has now occurred. The

prospects heading into 2019 ahead of the sales tax hike still appear skewed to

the downside." Others are pointing to a re-hashed story re: Trump and hush money

discussions (although this hit in Wall St. hours).

- Another factor worth noting is a weaker Nikkei 225 from the off.

- White & red Eurodollar futures trade 0.25 to 2.0 ticks higher last, small

seller of EDZ9M1 noted, with ~5.0K given in smallish clips early on.

- Focus now turns to retail sales data due later Friday, ahead of next week's

FOMC MonPol decision.

- T-Notes last 120.11, U.S. 10-Year cash Tsy yields last 2.897%.