*** Did Pres Trump just drop the mic...>

US TSY FLOWS: *** Did Pres Trump just drop the mic on the risk-off move that was

gaining momentum before myriad headlines where he heralded his great

relationship with China, that they would make a deal. Trump also announced he

had finished but had not submitted answers to Mueller probe questions. SPX

climbed to 2748.75 but is scaling back to 2737.75 right now.

- Tsy futures were extending session highs as US$ continued to weaken (DXY

-.521, 96.406) DXY now -.440 at 96.487; yield curves steeper but off earlier

highs (5s30s +2.492 at 44.450 vs. 46.891H) but now +1.944 at 43.902. Volume had

really tapered off since London clocked out, saw another 100k TYZ since

headlines aired

- Modest two way-flow earlier reverted to better buying in 5s-10s into midday,

prop, fast- and real$ selling intermediates to long end last few minutes.

Ongoing block buys (likely short covering) in TUZ ((+15k from 105-14.5 to

-15.25). Decent Dec/Mar futures rolls in 2s and 5s helping pad volume.

- On Trump headlines, traders wary, some surprised didn't come through Twitter

channels, maybe getting ahead of other headlines that may not be as glowing.