U.S. rates finished sharply lower on...>

US TSY/RECAP: U.S. rates finished sharply lower on Friday, with T-Notes going

out just off of session lows, after a second consecutive monthly headline NFP

print, although the prior saw a sharp revision lower.

- Fed's Bullard reiterated that he is happy with rates where they are, pointing

to a wait and see approach. Bullard also stated that the balance sheet is

"definitely" going to be bigger than first thought. Kaplan also pointed to a

wait and see approach as he noted that the Fed should stand pat for a couple of

quarters. Fed's Kashkari commented earlier today, noting that Fed Chair Powell

is "coming around" to the view that the bank should wait until wages & inflation

pick up before hiking interest rates again.

- Headline ISM M'fing was strong Friday, although prices paid component not as

strong.

- U.S. docket limited to November's factory orders and durable goods data on

Monday.

- T-Notes last 121.31, U.S. 10-Year cash Tsy yields closed at 2.684%.