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Carry-over risk-off from week opener...>

US TSY FLOWS
US TSY FLOWS: Carry-over risk-off from week opener on US/China trade angst
(debatably justified after Pres Trump threatens tariff increase to 25% on issues
that include draconian intellectual property practices by China).
- Tsy futures near late session highs, decent volume (TYM>1.5M) for relative
subdued session. Note 10Y yld at 2.4459% vs. Friday high of 2.5648%. Sharply
lower equities adding to tone (ESM9 -60.0 at 2872.0); VIX surges to new 4-month
highs of 21.52, 20.80 last. 
- Big jump in corporate issuance well on way of meeting $35B estimate for week
after $19B Bristol-Myers 9-tranche jumbo launch. Chatter IBM to issue this week.
Latest $38B 3Y note auction (9128286U9) tailed -- awarded 2.248% (2.301%
previous) vs. 2.242% WI, bid/cover 2.48 vs. 2.49 previous (3.07 avg).
- Heavy two-way option volume, call spd, outright straddle and strangle buyers
buoyed implieds.
- The 2-Yr yield is down 1.4bps at 2.2763%, 5-Yr is down 1.5bps at 2.2483%,
10-Yr is down 2.5bps at 2.4441%, and 30-Yr is down 3.2bps at 2.8566%.

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