Continuing theme: quiet trade on.......>

US TSY FLOWS: Continuing theme: quiet trade on limited data, Fed in blackout

ahead next week's policy annc, thin markets on light volumes (TYZ<815 well after

the bell). Even limited headline interest after late Tuesday Brexit vote

excitement. Taking wind out of mkt action: EU DECISION ON BREXIT DELAY WILL

PROBABLY COME FRIDAY, Bbg

- Rates quietly receded since setting highs around midmorning, late Microsft

earnings beat ($33.1B vs. $32.2B est) underpinned equities late.

- Light two way flow, light deal-tied flow in 5s. Another decent auction, US Tsy

$41B 5Y Note (912828YM6) awarded 1.570% rate vs. 1.576% WI (previous $41B 5Y

awarded 1.600%); 2.41 bid/cover vs. 2.32 prior. Indirects drew 65.69% vs. 58.80%

prior, directs 11.52% vs. 14.20% prior, dealers 22.78%.

-  Thu 14 day term operation with the Fed is $45B with minimum bid of 172

Overnight operation has been increased to $120....adding ample liquidity heading

into month end.

- The 2-Yr yield is down 1.1bps at 1.5837%, 5-Yr is up 0.7bps at 1.5925%, 10-Yr

is up 0.5bps at 1.766%, and 30-Yr is up 0.1bps at 2.2535%.