Tsys trading firmer, off............>

US TSYS SUMMARY: Tsys trading firmer, off midmorning highs. Generally quiet end

to wk after German headlines injected some vol overnight. German political angst

spiked Tsys after spurious headlines that Germany's CSU party would end alliance

w/Merkel's CDU party, Tsys quickly retraced as report denied. 

- Futures made new highs/risk-off bid on concerns over China tariffs balloon;

decent futures volume by midday (TYU>1.3m); 10YY see-sawed down to 2.8876% low

(after topping 3.0% post FOMC) as US$/Yen receded. 

- US$ off early highs (DXY -.084, 94.795 vs. 95.131H; US$/Yen -0.08, 110.56 vs.

110.9H); equities weaker (emini -12.0, 2776.5); gold CRATERED (XAU -23.97,

1278.33); West Texas crude took it on chin over-supply concerns (WTI -1.89, 65.0

vs. 64.58L). 2-way flow, better buys, curve flatteners, EDM8 futures/opts expire

- Fed speakers out of blackout, Fed Pres Kaplan only sees 3 hikes despite 4 dots

from FOMC Wed; Fed Pres Dudley coming off more hawkish saying the Fed needs to

keep growing inflation in check.

- Tsy cash/ylds: 2Y 99-28.8 (2.549%), 5Y 99-26 (2.789%), 10Y 99-21.5 (2.911%),

30Y 101-24 (3.035%)