Tsys were trading mixed at the close...>

US TSY/RECAP: Tsys were trading mixed at the close with longer dated paper

outperforming & the curve flattening on the day. Rates had opened weaker, with

the curve steeper on modest carry-over from risk-on London trade, limited

reaction to data was observed though USD/JPY pared gains post ADP employment.

- The Fed Minutes showed that almost all participants wanted a rate increase in

June, but one participant would have preferred to wait to allow inflation exp.

to rise to levels consistent with the Fed's goal. Most participants noted

"uncertainty & risks associated with trade policy had intensified" & suggested

that could eventually negatively impact business sentiment & investment,

pointing out that contacts in some districts had already scaled back capital

spending plans due to these concerns.

- The U.S. Tsy confirmed that the prev. announced tariffs on China will go into

play at midnight ET tonight, with U.S. President Trump noting that he is eyeing

up another $16bn in China tariffs in the coming weeks.

- NFP headlines on Friday.

- T-Notes lost at 120.10+, U.S. 10-Year Tsy yields closed at 2.829%.