Growing virus-count data (AZ, TX and...>

US TSY FLOWS: Growing virus-count data (AZ, TX and FL) continue to drive a

decidedly risk-off tone for the second half of the week, rebound in US$

contributed to further selling in equities (ESU0 -65.5 by the FUI close). 

- Position squaring and month end flow on more modest volumes (TYU< 850k) ahead

the weekend and next week's shortened holiday trade, not to mention non-farm

payrolls for June scheduled for Thu (+3.0M est vs. +2.509M May)

- After an orderly open, rated gapped to new session highs after latest Florida

virus count shows +7.8% vs. 4.1% 7 day avg, then again around midmorning after

Arizona reported 5.4% (+3,428) increase in COVID cases. 

- Ratio 5s/10s flattener Block: 

* -5,600 FVU 125-21.5 sell through 125-22.25 post-time bid; vs.

* +6,725 TYU 139-08.5 buy through 139-08 post-time offer

- Serial July Treasury options expire Friday, generating two-way flow on modest

pin risk in 5s and 10s.

- The 2-Yr yield is down 2bps at 0.1661%, 5-Yr is down 3.5bps at 0.2973%, 10-Yr

is down 4.9bps at 0.6364%, and 30-Yr is down 6.4bps at 1.3701%.