US Tsys ground higher again on.........>

US TSY/RECAP: US Tsys ground higher again on Wednesday, but finished back from

best levels.

- Retail sales came in softer than exp. which led a raft of GDP estimate cuts,

at the last count; Atlanta Fed 1.9%, Barclays 1.8%, Goldman 1.8%, JPM 2.0%.

- The release initially pushed Tsys higher, but the move was sold in to on a

brief bout of equity strength, before Tsys bumped higher again as equities

pulled back & USDJPY sold off.

- The short end came under pressure but operated in a narrow range ahead next

week's FOMC decision.

- Flow was mixed in the first half of Wednesday's session, while the second half

of the day saw better real & fast money buying, alongside banks, in the

intermediate to long end.

- T-notes last 120.15+, US 10-Year yield last 2.817%.