Tsys went out at/near best levels on...>

US TSY/RECAP: Tsys went out at/near best levels on Friday, with the curve

sitting a touch flatter.

- Fed Chair Powell headlined on Friday, in summary Powell noted that the economy

is robust with little concern re: overheating, gradual hikes remain appropriate

if growth continues, with inflation stable/little risk of accelerating above 2%.

- Elsewhere Fed's Mester stuck to her hawkish playbook noting that the case for

raising rates is "pretty compelling," Fed's Kaplan repeated the stance he

indicated earlier in the week, Fed's Bullard remained more cautious than most

Fed Presidents, reiterating that he wouldn't vote for additional hikes this year

(he is a non-voter in '18), finally Fed's Bostic noted that he is watching to

see if inflation accelerates.

- Markets inferred a dovish tinge from Powell's remarks re: inflation.

- Futures volume was supported by the Sep/Dec roll & the Sep option expiry.

- Focus this week falls on Q2 GDP data, Jul PCE & Chicago PMI.

- T-Notes last at 120.18+, U.S. 10-Year cash Tsy yields closed at 2.810%.