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Headline risks continue to roil........>

US TSY FLOWS
US TSY FLOWS: Headline risks continue to roil markets. Off second half lows on
late chop - risk-off unwound on Fed chair Powell comments re: growing balance
sheet; rates gapped higher on US/China trade related headlines few minutes
later: "U.S. Bans Travel by Chinese Officials Linked to Xinjiang Abuses".
Tensions still easily stoked ahead Thu's trade delegation visit in DC.
Speculation by traders over whether the meeting will go forward.
- Sidebar: "TRUMP'S TREASURY WEIGHS WEAKENING OBAMA'S TAX AVOIDANCE RULES" bbg
appeared to help support equities briefly. Equities extended session lows into
the close, ESZ9 -45.0.
- Small tail, US Tsy $38B 3Y note auction (912828YK0) awarded 1.413% (1.5730%
previous) vs. 1.410% WI, bid/cover 2.43 vs. 2.42 previous (3.05 avg).
- Decent deal-tied flow, hedge unwinds on just over $11B priced on day. Session
flow included bank and fast$ buying short end, prop and real$ two-way in 5s-10s.
- The 2-Yr yield is down 3.6bps at 1.4255%, 5-Yr is down 3.4bps at 1.3566%,
10-Yr is down 2.2bps at 1.5357%, and 30-Yr is down 1bps at 2.0382%.

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