Generally quiet mid-week session as....>

US TSY FLOWS: Generally quiet mid-week session as rates traded firmer, more or

less recovering from the prior session' weakness. Moderate volumes better than

the first half of wk w/TYU just over 1M after the bell. Yld curves bull

flattened w/3M10Y re-inverting (-7.843, -4.876; L:-5.050/H:-0.894). 

- Little react to new home sales below exp at 646k while markets spared an ear

to listen to ret special counsel Mueller testimony to Congress re: Russian

interference -- no new territory or revelations.

- Decent supply-related hedging as several domestic/foreign banks issued. On

Tsys: Small tail: US Tsy $41B 5Y note auction (912828Y87), awarded 1.824%

(1.791% June; 2.520% avg) vs. 1.812% WI, bid/cover 2.26 vs. 2.35 previous (2.49

avg).

- On Flows, better buys on net in intermediates to long end, swap-tied switches

in 2s and 5s earlier, payer in 5s at 1.78977%, 2s5s7s receiver fly, deal-tied

paying helping spds from narrowing further, steepener unwinds.

- The 2-Yr yield is down 1.6bps at 1.8219%, 5-Yr is down 1.7bps at 1.8164%,

10-Yr is down 3.3bps at 2.048%, and 30-Yr is down 3.9bps at 2.5762%.