Broadly weaker to say the least,.......>

US TSY FLOWS: Broadly weaker to say the least, Tsys continued to melt in late

summer sun all day, decent volume (TYZ>1.835M). NOT quite a risk-on move,

sell-off in rates more of an unwind of heavy buying in August. Accts looking to

square up ahead ECB and FOMC policy annc's. That said, equities jumped back to

mildly higher late while move in ylds accelerated into the equity close: 10YY

+.0861 at 1.7160% after making new all-time lows last week (1.4288% on Sep 3);

3M10Y still inverted after bear steepening some 17.0bp this week.  

- Steady drip of selling from various accts, heard chatter CTA's active sellers

second day running, real$ and prop buyers on dips from late morning on, decent

deal-tied selling in addition to Tsy auction hedging/unwinds. Option traders

traders short delta but long gamma. Others looking to discount the positive talk

of quick China trade resolution. Small tail US Tsy $38B 3Y note auction

(912828YF1) awarded 1.573% (1.562% previous) vs. 1.570% WI, bid/cover 2.42 vs.

2.41 previous (3.05 avg). 

- The 2-Yr yld is up 4.3bps at 1.5827%, 5-Yr up 5.3bps at 1.4855%, 10-Yr up

6.8bps at 1.6284%, and 30-Yr up 8bps at 2.1052%.