Early rate rally, thin participation...>

US TSY FLOWS: Early rate rally, thin participation compounding mkt react to

worse than expected retail sales (as well as ex-auto and gas numbers), early

volumes limited on thin participation (less than 25k TYM traded in the 10

minutes after data release). 

- Trade tensions between US/China lent to early risk-off bid while "U.S.

Commerce Moves to Block Huawei From Global Chip Suppliers" Bbg.

- Big reversal and spike in volume after by midmorning: Tsys sold off on

headlines that Sorrento Therpeutics claimed to have discovered the antibody that

kills COVID. Sounds too good to be true as Sorrento claims 100% effective

therapeutic that can also be used in lieu of vaccine as a preventive measure.

Equities did rebound off lows at time, some tight stops in Tsys triggered on the

move.

- Some late risk-off unwinds perhaps California virus cases +2.4% to 74,936.

- NY Fed lowers daily avg Tsy sec buys to $6B next wk from $7B this wk

- The 2-Yr yield is up 0.2bps at 0.1491%, 5-Yr is up 0.5bps at 0.3098%, 10-Yr is

up 1.9bps at 0.6412%, and 30-Yr is up 2.7bps at 1.3177%.