Tsys spiked higher into the close on...>

US TSY/RECAP: Tsys spiked higher into the close on Tuesday as T-Notes unwound a

chunk of their losses. The bid came on the back of ex-Trump lawyer Michael Cohen

reaching a plea deal with prosecutors, including an acknowledgement that "hush

money" payments were made on behalf of a candidate to influence an election.

While Trump was not specifically named, a top Democrat on the HIC stated that

"Cohen's guilty plea potentially implicates trump in illegal campaign finance

violations." Elsewhere former Trump campaign official Paul Manafort was found

guilty of tax evasion and fraud.

- Until then it had been a relatively quiet session with Tsys drifting lower

ahead of the Fed minutes & Jackson Hole symposium later this week. Pick-up in

Sep/Dec Tsy futures rolling helped boost overall volume; Sep Tsy options expire

on Friday w/ongoing put replacement buying in Dec expiries.

- Fed's Kaplan noted that the Fed has met its goals and should raise rates

gradually, touting the neutral rate level around 3-4 hikes away. He also

stressed that he is watching the yield curve carefully.

- T-Notes last 120.19+, U.S. 10-Year cash Tsy yields closed at 2.830%.