Continued strong risk-off support......>

US TSY FLOWS: Continued strong risk-off support Wed as US/China trade tensions

heat up after Senate passed human rights/democracy bill in support of Hong Kong

late Tue, second vote in house expected Wed. China expected to retaliate. 

- Tsys see-sawed off highs in the first half until perhaps ironically, a

re-hash/outline by Reuters that phase 1 trade deal may not be done this year

spurred sharp risk-off move just after midday. 

- October FOMC minutes not exactly generating a lot of excitement after release,

Tsys holding strong gains after brief reversal on US/China trade chatter from

Trump admin aide that progress on phase 1 deal text IS being made -- no

specifics offered. 

- Yld curves near session lows amid some steepener stop-outs for fast$, heavy

overall futures volumes partially tied to surge in Dec/Mar rolling as well as

option hedging ahead Fri's Dec option expiration. Limited deal-tied flow. Appr

6k Eurodollar Red packs (EDZ0-EDU1) at +0.010) said to be swap related.

- The 2-Yr yield is down 2.9bps at 1.5675%, 5-Yr is down 4.5bps at 1.5758%,

10-Yr is down 5bps at 1.7329%, and 30-Yr is down 5.3bps at 2.1985%.