Chopping around weaker territory,......>

US TSY FLOWS: Chopping around weaker territory, Tsys extend late overnight lows

heading into the NY open, futures volume rather muted (TYM<265k). Initial gap

lower tracked Bunds after 5-yr N/Ireland backstop limit headline--rebound soon

after as Germany denied. Extends lows last few minutes amid ongoing Brexit, US

trade/tariff headline risk. Equities little weaker (SPX -3.0, 2895.25); US$

index lower (DXY -.142, 96.909). 

- Swap-tied selling short end as well as pre-auction short sets ahead today's

$38B 3Y note auction, bank portfolio selling 5s and 10s vs. prop and fast$

buying on modest size.

- On tap for Tuesday: NFIB Small Business Index; Redbook retail sales; JOLTS job

openings and quit levels for February; IBD/TIPP Optimism Index. Nomura

economists "expect labor demand to cool as economic momentum slows," adding that

"labor market turnover held at 4.1%, slightly below the recent 4.2% peak."

- The 2-Yr yield is down 0.4bps at 2.3578%, 5-Yr is down 0.3bps at 2.324%, 10-Yr

is down 0.2bps at 2.5203%, and 30-Yr is up 0.3bps at 2.9305%.