Broadly weaker near levels not seen....>

US TSY FLOWS: Broadly weaker near levels not seen since Aug 8, heavier volumes

(TYZ>2.4M) but most of that traded by midday. Despite the ECB policy and

spurious US/China trade anncs' (both side's "considering" making accommodations

is NOT a hard plan), Tsy implied vols retreated. Those that look at 3M10Y

inversion as a red flag for futures recession, the metric is currently in the

mid-teens, nearly 40bp off deeper inversion from couple weeks ago. 

- Second half flow included pre-a8uction short sets followed by decent fast- and

real$ buying into the post-auction sale, real$ sold 10s vs. off the runs, after

5s10s block steepener, fast$ in 3s30s flatteners. Earlier flow included better

fast$ and prop buying intermediates, real$ and bank portfolio buying in

intermediates to long end, chatter of CTA sales in 10s on post ECB move.

- US TSYS/30Y: Weak -- third tail of the week, US Tsy $16B 30Y bond auction

(912810SJ8) awarded 2.270% (2.335% last month) vs. 2.255% WI; w/ 2.22 bid/cover

(2.42 avg). 

- The 2-Yr yield is up 4.9bps at 1.7233%, 5-Yr is up 5.8bps at 1.6515%, 10-Yr is

up 5.2bps at 1.7906%, and 30-Yr is up 5bps at 2.2709%.