Late risk-off move showed..............>

US TSY FLOWS: Late risk-off move showed skittishness of mkts: equities dropped

but off lows on FT headline: "U.S., CHINA STRUGGLE TO CLOSE PHASE-1 DEAL". Thin

mkt depth, w/accts that aren't already on the sidelines quietly squaring up

ahead Friday and growing anxiety over what Beijing may do to quell Hong Kong

violence.

- Uncertain react to domestic mkt if "Hong Kong Human Rights and Democracy Act"

bill passed in Senate, but don't think China mkts will treat positively.

- Myriad Fed speakers on day did not break new ground, Fed Chair Powell remarks

largely mirrored those made to JEC on Wed. 

- Tsy futures made new session/week highs, flow includes program buying in 10s

and 30s, light fast$ flatteners in short end, modest swap and corporate

deal-tied selling across the curve, Dec/Mar Tsy futures rolling continued at

moderate pace.

- The 2-Yr yield is down 4.7bps at 1.5893%, 5-Yr is down 6.9bps at 1.6218%,

10-Yr is down 7.3bps at 1.8135%, and 30-Yr is down 6.7bps at 2.2976%.