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

US TSY/RECAP: Tsys traded weaker by the bell, going out near session lows on

heavy volume - inflated due to massive Sep/Dec roll volume ahead of Friday's

first notice. The curve finished the day a little steeper, as the space sold off

for a second session, on the back of the U.S.-Mexico trade deal.

- The strong consumer confidence headline data drew attention, allowing Tsys to

edge to fresh lows, although the reaction was limited.

- The latest 5-Year Note auction drew a modest 0.1bp tail, with dealer

participation a little lower than the recent average, as indirect participation

held up, although the cover ratio slid to the lowest level observed since April.

- Fed's Kashkari (non-voter) offered little to no fresh insight, while Richard

Clarida's appointment as FOMC Vice-Chair passed through the Senate.

- Looking at the Eurodollar strip, EDU8 finished slightly higher, with the rest

of the strip lower, on light volume.

- U.S. GDP & 7-Year supply headline on Wednesday, with 2-Year FRN supply also on

the slate.

- T-Notes last 120.04, U.S. 10-Year cash Tsy yields closed at 2.880%.