Tsys trades weaker by the bell, near...>

US TSY FLOWS: Tsys trades weaker by the bell, near low end moderate range on

heavy volume -- inflated due to massive Sep/Dec roll volume ahead Fri's first

notice, expect heavy volume to carry over into Wed.

- US$ index soft but off lows DXY -.077, 94.702, $/Eur firm +0.0017 1.1695,

$/Yen +.16 111.25; equities mildly higher (emini +1.5, 2900.0); Gold reversing

direction (XAU -10.60, 1200.76); West Texas crude mildly lower (WTI -0.20,

68.67). 

- Data picked up, but little react to jump in Aug Cons Conf 133.5 vs. 126.5 est

(127.4 prior). Second leg Tsy supply Tue w/$37B 5yr auction on the screws --

awarded 2.765% rate vs. 2.765% WI (awarded 2.815% in July; 2.521% avg) w/

bid/cover 2.49 vs. 2.61 previous (2.50 avg).

- While eq's didn't react strongly, rates traded w/risk-on tone as trade

tensions continued to cool day after US/Mexico trade negotiations. Canada's

Trudeau says progress on autos, looks forward to deal "if good for Canada" a

line from Trump's playbook. Tsy cash/ylds: 2Y 99-29.2 (2.665%), 5Y 99-28

(2.775%), 10Y 100-06 (2.882%), 30Y 99-11.5 (3.032%).