Tsys higher by the bell, near top......>

US TSY FLOWS: Tsys higher by the bell, near top end of range after rebounding on

late headlines Pres Trump backs $200B China tariffs as early as next wk; US$

gains vs. majors, equities fell below 2900.0. US$ strong all day, DXY +.115,

94.715 (94.469L/94.900H), $/Eur off -0.0046 1.1662, $/Yen session lows late -.66

111.02; equities weak (emini -19.0, 2895.75); Gold weaker (XAU -6.46, 1200.19);

West Texas crude firm (WTI +0.65, 70.16). 

- Rates had sold off/pared gains on positive trade headlines pre-open (EU

willing to scrap industrial, auto tariffs Politico reports) seems too good to be

true while Tsys retraced. Second day rates showed little react to in-line data:

weekly claims (213k), personal income (0.3%), total PCE price index (0.2%);

Chicago PMI Friday. Volumes tapering off as futures rolls wound down, Dec takes

lead Fri. Underlying month-end support, mixed two-way flow, positioning ahead

extended Labor Day holiday early, light deal-tied flow, spd curve flatteners and

front-end swap flies. Fast- and real$ buying intermediates, bank buys 30s late.

- Tsy cash/ylds: 2Y 99-29.75 (2.657%), 5Y 99-30 (2.762%), 10Y 100-01.5 (2.868%),

30Y 99-23 (3.013%).