Tsys jumped on a disappointing......>

US TSYS SUMMARY: Tsys jumped on a disappointing nonfarm payrolls report Friday,

later retracing some gains as Fed Chair Powell did little to shift expectations

for the Sep FOMC.

- NFPs headline came in at +130k, below +160k consensus, with -20k 2-month net

revision dampening the report further. +0.4% M/M AHE in particular gave some

space for hawkishness, but most focus on job growth slowdown.

- Powell downplayed NFP weakness in comments in Switzerland, repeated earlier

language on sustaining the expansion. Rates/Tsys pared some gains.

- In the end, Sep 25bps cut remains fully priced, 50bps looks off the table for

now. Reminder: FOMC blackout period beginning tonight.

- Dec 10-Yr futures (TY) up 0.5/32 at 131-10 (L: 130-27 / H: 131-15.5).

- The 2-Yr yield is up 0.8bps at 1.5342%, 5-Yr is down 0.1bps at 1.4246%, 10-Yr

is down 0.5bps at 1.5534%, and 30-Yr is down 2.3bps at 2.0264%.