Tsys trading firmer by the bell,....>

US TSYS SUMMARY: Tsys trading firmer by the bell, well off post data gap-trade.

Rather disappointing trade on anemic volume w/appr 640k TYU since the open

adding to 250k overnight. Little react as tariffs on Chinese goods took effect

midnight Thu (reaction to tariffs already priced in, potential for negative

consequences of to economy will take much longer to show up).

- US$ index weaker (DXY -0.353 to 94.042; US$/Yen lower -.22 110.42

(110.79H/110.38L); equities stronger (emini +25.5, 2764.0); gold weaker (XAU

-2.6 1255.27); West Texas crude rebounds (WTI +.87, 73.81).

- Mkt overreacted to data, "mainly because wages didn't meet expectations, and

the U/E rate nudged higher to above 4.00%," one trading desk said. Others

posited algo related buying caused post data spike (only picking up on the AHE

figure). Limited 2-way flow from late morning on, light position squaring ahead

weekend, rates paring gains later in second half, fast$, props selling 10s. Fed

to release chairman Powell's Semiannual monetary policy report to Congress at

1100ET Friday, July 13. Tsy cash/ylds: 2Y 99-29 (2.541%), 5Y 99-17.5 (2.721%),

10Y 100-12.5 (2.827%), 30Y 103-22 (2.938%).