Mild early de-risking lost momentum....>

US TSY FLOWS: Mild early de-risking lost momentum by midmorning. Support in

rates evaporated after trade comment from Lighthizer: "EXPECTS U.S. AGRICULTURE

SALES TO CHINA TO DOUBLE" (though hard details still absent).

- Otherwise, pre-holiday market malaise continued, Nov housing starts/permits,

industrial production, cap-u did little to spark interest. 

- Familiar refrains from Fed speakers, Rosengren: economy is "quite solid" and

monetary policy is well positioned for 2020 barring an unexpected shock; Kaplan

is comfortable with the current level of the policy rate going into 2020.

- Large 30s/Ultra-bond block: +6,000 USH 157-02, post-time bid vs. -7,000 WNH

184-00, sell through 184-09 post-time bid -- the steepener NOT duration neutral

w/over twice WNH needed for neutral hedge. Positioning flows more than a

concerted risk-related move w/equities hovering around steady. 

- The 2-Yr yield is up 0.4bps at 1.6306%, 5-Yr is up 0.8bps at 1.7098%, 10-Yr is

up 1.4bps at 1.8853%, and 30-Yr is up 2.5bps at 2.3117%.