*** Tsys traded weaker for much.....>

US TSYS SUMMARY: *** Tsys traded weaker for much of the session, some early chop

off lows as Algos, fast$ locked on GDP miss +2.6% vs. 3.0% exp, but overall

mixed data view had sellers filling the gap. Tsys hit session lows by late

morning, 10Y yld high 2.6711, 2.6599 last. Equities rising to new all-time highs

(Indu 26,556.; emini 2868.0) kept some pressure on Tsys while others covered

shorts expecting a turn in near term as pension rebalance portfolios.

- Tsys opened weaker on modest volume ahead headline data, 2s and 5s vs. 30s

flattening w/EGBs. Post data, mkt moving headline watch turned to final eco-fin

conf in Davos, muted -- had more react Thu's when US Pres Trump said admin

wanted stronger US$.

- Long end has quietly slipped to new session lows last few minutes, drawing

light buying from fast$, props squaring into weekend. Note, 2Y yld making new

nine year high of 2.1283% (+.0441). Curves mixed but off early flats, 5s30s

-2.211, 43.871 (46.996H/43.228L);

- Heavy Eurodlr selling short end, March rate hike closer to a lock; 3.75k

Eurodlr 2Y bundle Block at -0.027 said to be swap-tied.