Day after Fed held rates steady w/ a...>

US TSY FLOWS: Day after Fed held rates steady w/ a side of exceptionally long

ZIRP forward guidance through 2022, rates ground higher through the session, yld

curves bull flattening. Rate bid underscored by increasing risk-off as equities

tumbled (ESM0 down more than 5.5%, back to late May levels; Dow In -6.9%; NDX

-5.3% in late trade). 

- Risk-off tied to virus case numbers rising (Fl, Ca), civil rights protests and

how administration will react. Current rate levels still well off early March

highs. Large 10s/30s steepener Block (+14,576 TYU 138-31.5, post time offer;

-5,951 USU 177-23 THROUGH the 177-29 post time bid).

- Second tail after Tuesday's 10Y R/O, US Tsy $19B 30Y bond auction re-open

(912810SN9) awarded 1.450% (1.342% last month) vs. 1.442% WI; w/ 2.30 bid/cover

(2.30 prior).

- Overnight flow included misc Asian acct selling into strength in long end,

flatteners/steepener unwinds in 2s10s and 5s30s, swap-tied buying intermediates.

- The 2-Yr yield is up 3bps at 0.1967%, 5-Yr is unchanged at 0.315%, 10-Yr is

down 6.6bps at 0.6608%, and 30-Yr is down 10.5bps at 1.4013%.