Tsys trading weaker, off midmorning....>

US TSY FLOWS: Tsys trading weaker, off midmorning lows into midday. Factors for

move off lows: Hurricane Florence bad, but not as much as feared; Pres Trump

headlines note still wants appr "$200B in China tariffs despite talks". Eq's did

NOT take kindly to item. Tsys had extended lows on back of strong rebound in US$

earlier. Chi Fed Pres Evans green-lights steady rate hikes (wouldn't be

surprised to see 2 more this yr) suggested inflation "not going to run away". 

- US$ bounced/new highs post China/tariff header, dollar index DXY +.393, 94.911

(94.359L/94.955H), $/Eur pared early gains -0.0026 at 1.1664, $/Yen +.16 112.09;

equities reverse (emini -5.0, 2905.25 vs. 2917.25H); Gold off (XAU -7.24,

1994.25); West Texas crude higher again after paring strong gains for wk Thu

(WTI +1.0, 69.59 after tapping 71.26 Tue). 

- Little react to data: Data on tap includes Retail Sales (0.1%), IP (0.4%),

CapU (78.1%, UMich sentiment (100.8). Flow included fast$, prop acct two-way

short end, real$, bank portfolio sales 7s, 10s and 30s, mixed swap flow, front

end payers. Tsy cash/ylds: 2Y 99-23 (2.774%), 5Y 99-10.75 (2.893%), 10Y 99-01

(2.987%), 30Y 97-16.5 (3.127%).