Broadly weaker by the bell but off.....>

US TSY FLOWS: Broadly weaker by the bell but off lows following heavy two-way

chop earlier. Head-fake: rates collapsed after initially trading stronger

following ECB steady policy annc (low rate guidance through 2020). Support short

lived, Tsys collapsed, following EGBs lead as ECB Draghi's post annc conf taken

less dovish than anticipated. Equities rallied to new all-time highs (ESU9

3027.5) before chopping back to around 3000.0 in late trade.

- Rate sale stalled after ECB officials said they see rate cut in Sep. Sources

reported fast- and real$ buying intermediates to long end as move accelerates

last few minutes, yld curves scaling back. Swap spds collapsed in second half

amid pick-up rate receiving in 2s-7s. 10s/Ultra-bond steepener Block followed by

TYU sale.

- US TSYS/7Y: Another tail, US TSY $32B 7Y note auction (912828Y95) awarded

1.967% rate vs. 1.953% WI (previous $32B 7Y awarded 1.889%); 2.27 bid/cover vs.

2.44 prior (2.61 avg).  

- The 2-Yr yield is up 3.6bps at 1.8539%, 5-Yr is up 4bps at 1.8502%, 10-Yr is

up 3bps at 2.0723%, and 30-Yr is up 3bps at 2.6024%.