Tsys sharply weaker by the bell,.......>

US TSY FLOWS: Tsys sharply weaker by the bell, near session lows after stronger

than expected avg hourly earnings (0.4% largest increase since early 2009) and

up-revisions for prior; Aug NFP slightly better than estimated Aug NFP breaks

seven consecutive August MISSES (second beat in past 21 August reads). But

taking into acct revisions, the Aug "would only have risen by 151K" source

noted. 

- US$ index strong DXY +.362, 95.383 (94.871L/95.458H), $/Eur -0.0061 at 1.1562,

$/Yen +.34 111.09; equities soft/off lows (emini -3.5, 2875.5); Gold soft (XAU

-4.02, 1195.94); West Texas crude steady (WTI +0.00, 67.78).

- Decent/heavy flow, fast- and real$ joined program sellers post data, Block

sale 10k TYZ 119-29 post data; long end pares move slightly, fast$, prop accts

buying 5s and 10s. Yld curves bent flatter even as 2Y yld revisits mid-2008 lvls

(2.703%). Heavy option and hedging flow. Renewed bank portfolio and real$

selling in 10s and 30s late, pro-active deal-tied selling. Tsy cash/ylds: 2Y

99-27 (2.703%), 5Y 99-21 (2.823%), 10Y 99-13 (2.942%), 30Y 97-30 (3.105%).