Late risk-off panic buying that........>

US TSY FLOWS: Late risk-off panic buying that drove 10YY and 30YY yields to new

all-time lows (10YY 0.9043%; 30YY 1.5041%) cooled off slightly as the rout in

equities lost momentum in late trade. Markets doing their best to price in

another rate cut at the Mar17-18 FOMC after the FOMC's first intermeeting rate

cut since October 2008. Yld curves surged steeper 3M10Y off inversion.

- When 50bps cut just isn't enough! Eurodollar futures market pricing in at

least another 25bps move by the FOMC at the Mar17-18 annc and more anticipated

as the year progresses. Lead quarterly lead gap bid on heavy volumes.

- Not waiting for more virus news (or Fri's jobs data for a hint) Soc Gen

economists just out w/expectation of another 25bp cut at the March meet. Not

that intermeeting cuts happen very often (today's was first since late

2008) one desk notes the Fed has never made an intermeeting cut WITHOUT

following up with another cut" at the next scheduled meeting. 

- The 2-Yr yield is down 20bps at 0.703%, 5-Yr is down 19.6bps at 0.7462%, 10-Yr

is down 16.1bps at 1.0022%, and 30-Yr is down 10.4bps at 1.617%.