*** Tsys traded weaker all..........>

US TSYS SUMMARY: *** Tsys traded weaker all session, off session lows by the

close amid risk-on tone despite doubt over Senate vote averting US gov shutdown

(read 4 week stop-gap/can-kicking). Equities higher/off midweek all-time highs

(emini +12.0, 2808.25), gold firmer (XAU +7.27, 1334.39).

- Little fanfare after 10Y yld blew through 2.62% late Thu to 2.6444% high Fri.

Light data day, focus on whether US Senate will pass another stopgap spending

bill, avoiding Fri midnight shutdown. Fed enters blackout period Saturday

- Little react to Bbg/Mich sentiment miss 94.4; flow included technical selling

as 10Y yld crosses 2.635% again, modest curve unwinds by fast$ adding to

pressure in long end.

- Swap curve steepened as long end surged off deeper inversion on hopes of

easing bank regulations/softer leverage ratios. deal-tied paying ahead expected

supply next week, sources note some receiver unwinds out the curve with specs

putting on tactical wideners to get ahead of further dis-inversion. 

- Decent option trade, ongoing interest in hedging 2-4 hikes in 2018, 2019

- Late ylds: 2Y 2.056%, 3Y 2.188%, 5Y 2.434%, 7Y 2.566%, 10Y 2.637%, 30Y 2.911%