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

US TSYS SUMMARY
US TSYS SUMMARY: Tsys trading firmer, well off post data gap-trade after midday.
Rather disappointing first-half trade on anemic volume w/appr 570k 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 -0.368 to 94.027; US$/Yen lower -.16 110.48
(110.79H/110.38L); equities stronger (emini +24.25, 2762.75); gold weaker (XAU
-3.24 1254.64); West Texas crude rebounds (WTI +.80, 73.74).
- Mkt overreacted to data, "mainly because wages didn't meet expectations, and
the U/E rate nudged higher to above 4.00%," one trading desk said. Others
posited algo related buying caused post data spike (only picking up on the AHE
figure).
- Limited 2-way flow from late morning on, light position squaring ahead
weekend, rates paring gains later in second half, fast$, props selling 10s.
- Tsy cash/ylds: 2Y 99-29 (2.545%), 5Y 99-16.5 (2.728%), 10Y 100-11 (2.833%),
30Y 103-20 (2.941%).

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