Tuesday`s recessionary ISM data.....>

US TSYS SUMMARY: Tuesday`s recessionary ISM data continues to reverberate, with

Tsys climbing back from lows as global equities weaken sharply.

- Dec 10-Yr futures (TY) up 4.5/32 at 130-25.5 (L: 130-14 / H: 130-27); move

since the London open has mirrored S&P E-Minis (-0.66% at 2923.25). 

- Strength concentrated in the short-end: the 2-Yr yield is down 2.2bps at

1.524%, 5-Yr is down 1.5bps at 1.4756%, 10-Yr is down 1bps at 1.6249%, and 30-Yr

is down 0.5bps at 2.0876%.

- Prob of Oct FOMC 25bps cut now up to 64%; was <40% pre-ISM data (per CME

Fedwatch, based on FF futs).

- Main flow overnight = 25K bought FVZ9 120.00/120.75/121.25 broken call ladder

(at 0-04 via 20k block in Asia hours, then later 5k at 0-03+).

- ADP employment out at 0815ET; will receive additional scrutiny following weak

employment sub-component in yest`s ISM.

- FedSpeak: Richmond Fed's Barkin speaks in Virginia at a conference on

investing in rural America (0800ET); Philly's Harker at St Louis Fed community

banking conference (0900ET); NY's Williams in discussion at UCSD (1050ET).