On an otherwise quiet session -- mkt...>

US TSY FLOWS: On an otherwise quiet session -- mkt livened up on late session

chop tied to Brexit headlines: rates sold off as on Bill pass, rates rebound,

Tsy futures extend session highs as Timeline vote failed to pass. Volume picked

up after votes but remained below average (TYZ<1M).

- Modest two-way flow for most part, deal-tied selling 10s, pre-auction short

sets ahead strong 2Y note auction. Program sales after first withdrawal vote

passed, flurry of buying from fast$ and props in 10-30s after timeline vote

failed.

- Strong US Tsy $40B 2Y Note auction (912828YP9), stopped through w/ 1.594% rate

(1.612% in Sep) vs. 1.607% WI, bid/cover 2.70 vs. 2.64 previous. Indirects drew

54.83% vs. 57.01% prior, directs 13.96% vs. 15.93% prior, dealers w/ 31.22% vs.

27.06% prior.

- The 2-Yr yield is down 1.4bps at 1.6067%, 5-Yr is down 1.7bps at 1.5941%,

10-Yr is down 2.1bps at 1.7782%, and 30-Yr is down 2.2bps at 2.2695%.