Tsys traded mixed into the close on....>

US TSY/RECAP: Tsys traded mixed into the close on Friday , mid- to lower half of

range, giving back all the gains seen following Thursday`s weak inflation print.

- Long end pared gains prior to U-Mich data and Fed Bullard comments: yield

curve inversion risk "crunch time", current policy rate pressing against "upper

bound" of neutral, low mkt-based inflation measures caution about pace of rate

hikes. All the rise from Thursday`s weak inflation data has been given back. 

- Decent rate receiving/payer unwinds in 2s as front end of Eurodollar strip

surges (3M LIBOR -0.0125 to 2.3425%; FRA/OIS collapse -4.25, 35.8) w/others

faded move via paying in 2s around 2.7675, receivers in 1s (2.54875-2.55%),

$214k 2s3s7s fly, paying 7s. 

- Yields closed at: 2Y 2.535%, 3Y 2.690%, 5Y 2.835%, 7Y 2.937%, 10Y 2.968%, 30Y

3.107%