Headlines ruled market (and lack of....>

US TSY FLOWS: Headlines ruled market (and lack of data and Fed speakers). Tsys

extended session lows after closing bell on hopes of bipartisan stimulus to

combat COVID-19 effect on economy (after Tsy Sec Mnuchin and House speaker

Pelosi meeting), 10YY 0.7951% vs. 0.5621 low, 30YY 1.3086% vs. 1.0100% low; huge

swing in yld curves: bear steepening. Equities ground back near early highs

emini +130.0.  

- Second half Trump/Pence headlines re: virus mitigation helped take air out of

midday risk-off move: "PENCE: INSURERS AGREED TO WAIVE ALL COPAYS FOR VIRUS

TESTS" Bbg. Two headlines triggered midmorning risk-on unwind: "VIRUS IS

`CLEARLY A MASSIVE GLOBAL OUTBREAK,' REDFIELD SAYS" Bbg; "U.S. BEYOND VIRUS

CONTAINMENT IN SOME AREAS, REDFIELD SAYS" Bbg.

- Swap spds collapsed, 2Y inverting vs. 5Y amid consistent if not heavy

receiving across the baord. US Tsy $38B 3Y Note auction (912828ZD5) tailed:

awarded 0.563% (1.394% last month) vs. 0.535% WI, bid/cover 2.20 vs. 2.56

previous. The 2-Yr yield is up 14.3bps at 0.5243%, 5-Yr is up 18.4bps at

0.6609%, 10-Yr is up 24.5bps at 0.7856%, and 30-Yr is up 30bps at 1.2948%.