Tsys were sharply weaker by the bell...>

US TSY/RECAP: Tsys were sharply weaker by the bell on Friday, going out at/near

session lows after stronger than expected avg. hourly earnings (0.4% largest

increase since early 2009) and upward-revisions for the prior reading in the

latest U.S. labour market report, with the headline NFP also providing a slight

beat vs. exp.

- Futures experienced decent to heavy flow, as fast- and real-money a/c's joined

program sellers post-data, with a 10k TYZ 119-29 block sale also weighing in.

The belly of the curve underperformed in cash dealing. Heavy option and hedging

flow was also observed as renewed bank portfolio and real-money selling in 10s

and 30s re-emerged late on, with pro-active deal-tied selling also seen.

- CPI & retail sales headline the U.S. economic docket this week, with 3-, 10- &

30-Year Tsy supply due, as well as a plethora of Fedspeak.

- The Eurodollar strip went out near lows on a volume heavy session.

- T-Notes last at 119.20, U.S. 10-Year cash Tsy yields closed at 2.939%.