Muted trade on day after impeachment...>

US TSY FLOWS: Muted trade on day after impeachment exhaustion? No, just simple

holiday malaise w/markets turning a blind eye to the impeachment of Pres Trump

Wed night.

- Delayed react to early data, Tsys rallied back to early London trade levels.

Desk response to weak Philly Dec at 0.3: "since Q4 2016 there has only been one

weaker post, in Feb of this year, and one equal reading." Another posited the

jump in weekly claims and the weak Philly "should offer support against

multi-week lows."

- Tsys as well as equities climbed to new session highs by midday (all-time

highs for stocks: ESH0 3210.5), as US$ gains vs. GBP but off vs. JPY. Sources

reported two-way positioning flow gives way to fast$/prop buying in shorts to

intermediates, real$ buying long end.

- Note: Tsy 2s10s yld curve climbed to high of year 31.001 -- back to Nov 2018

levels.

- The 2-Yr yield is down 1bps at 1.6186%, 5-Yr is down 1.2bps at 1.7217%, 10-Yr

is down 0.7bps at 1.9099%, and 30-Yr is down 0.1bps at 2.3458%.