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Despite the Fed Chair testimony and....>

US TSY FLOWS
US TSY FLOWS: Despite the Fed Chair testimony and House impeachment hearings,
US/China trade headlines steal the show. Strong risk-off on late headlines
outlining a "snag" in negotiations over agricultural purchases kicked Tsys
higher and reversed tepid gains in equities. TYZ volume spiked by 100k in less
than 5 minute period from 128-25 to -28.5. Gold also rallied on safe haven
buying.
- Tsys traded strong early, risk-off carry-over from late Tue after Pres Trump
speech at NY Econ Club speech re: China trade failed to enlighten. Decent
volumes at moment, (TYZ>440k); Tsy yld curves bull flattening w/3M10Y appr
12.5bp flatter last 24 hours.
* Tsy futures Block sales, early bond sale weighed: -9,243 USZ 157-11, sell
through 157-19 post-time bid; -8,400 FVZ 118-10.75, sell through 118-11
post-time bid late morning. Other flow included two-way on net from fast$ and
props in the the short end to intermediates, modest deal-tied flow in 2s-10s.
- The 2-Yr yield is down 2.8bps at 1.634%, 5-Yr is down 5.1bps at 1.6878%, 10-Yr
is down 5.4bps at 1.8808%, and 30-Yr is down 5.7bps at 2.3589%.

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