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Nascent risk-on tone evaporated........>

US TSY FLOWS: Nascent risk-on tone evaporated late, rates inched higher as eqs
reversed course. Dead-cat bounce earlier (after Mon's sharp sell-off in
equities) added impetus from positive China trade noise from Trump advisor
Kudlow, EU/UK to discus Brexit draft agreement Wed (1400ET), large-ish buy
program >1280 stocks.
- Tsy yld curves mostly steeper as long end underperformed. Notable Large
5s/Ultra-bond steepener block in early trade: +39,682 FVZ 112-11.5, buy through
-10 post time offer, -7,235 150-04, post time bid.
- Slow data day, little substance from multiple Fed speakers w/Mn Fed Pres
Kashkari, Fed Gov Brainard, Philly Fed Pres Harker and Philly Fed Pres Harker.
Quiet US Tsy bill auctions: $164B total 4-, 8-, 13- and 26W.
- Rates inched off lows midday, gained traction as equities reversed, deal-tied
flow, prop and fast$ two-way in intermediates. Swap flow: receivers in 2s at
3.091%, payer in 4s at 3.13625%, two-way in 5s from 3.1394% to 3.13737%, 2s3s5s
receiver fly and 3s5s10s payer fly on modest volume. Tsy cash/ylds: 2Y 99-30.75
(2.891%), 5Y 99-15.25 (2.987%), 10Y 99-25.5 (3.147%), 30Y 100-02.5 (3.370%).

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