Generally quiet, sideways trade........>

US TSY FLOWS: Generally quiet, sideways trade session for rates, markets

starting to ignore one-off geopol risk related headlines that would have spurred

more frenzied action earlier in week. Quickly retraced: mild risk-off buying

after Iranian military commander headlines cross wires that missile attacks

against US forces in region will continue with the aim to "expel US troops",

Iran state television. Multiple Fed speakers on day failed to move the needle.

Many squared and pared, plying sidelines ahead Friday's headline Dec nonfarm

payrolls (165k est).

- Tsys marched past overnight highs in minutes after strong 30Y auction/re-open,

yld curves bull flattening. US Tsy $16B 30Y bond auction/re-open (912810SK5)

awarded 2.341% (2.307% last month) vs. 2.357% WI; w/ 2.54 bid/cover (2.46

prior). Indirects drew 63.03% vs. 63.43% prior, 17.89% directs vs. 21.10%, and

19.09% for dealers vs. 15.46% prior.

- Another strong day for corporate issuance: $13.9B to price on day; $73.4B/wk.

- The 2-Yr yield is down 1bps at 1.5704%, 5-Yr is down 1.5bps at 1.6481%, 10-Yr

is down 2.3bps at 1.851%, and 30-Yr is down 3.9bps at 2.3232%.