Carry-over risk-on tone losing steam...>

US TSY FLOWS: Carry-over risk-on tone losing steam into midday, Tsys trim losses

as equities struggle to stay in the black following a two-day rout (global

stocks reportedly lost $2.2T on Thu's decline alone?!?).

- SPX nearly back to steady at the moment, Tsys still lower but poised to extend

while VIX vol index has trimmed losses in anticipation.

- Nevertheless, pretty muted trade in the first half, current futures volume

decent, but largely occurred overnight into early NY hours. 

- Modest dealer customer flow, still wary of taking on added risk ahead weekend,

carry-over selling in 5s, 10s and 30s w/prop and fast$ sellers 5s-10s from O/N

into first half. Fast$ and prop acct buying more recently, light curve flow

two-way, swap-tied flow light and two-way with rate paying in shorts to

intermediates, some deal-tied ahead expected pick-up in issuance next week.

- Tsy cash/ylds: 2Y 99-26.5 (2.836%), 5Y 99-14.25 (2.994%), 10Y 97-24.5

(3.139%), 30Y 94-01.5 (3.315%).