Quiet end to 2018 for rates and........>

US TSY FLOWS: Quiet end to 2018 for rates and foreign currencies despite the

early chop. Markets close early for New Years eve. Tsy bill auctions: $39B 13W

(912796RD3), $36B 26W bills (912796RW1) and $26B 52W bills (912796RT8) passed

without incident; no react to Dallas Fed employ index 11.0/production index 7.3.

- Early equity bid on positive sounding headlines on US/China trade (WSJ article

over weekend -- "fleshing out" deal) and Italy budget acceptance.

- FI Volumes very light (Japan out most of week for various year-end holidays),

TYH just over 460k by the bell; long end futures outpaced, yld curves reverse

mixed. US$ vs. Yen slips to new 6M low, 109.66 last seen mid-June.

- Light, two-way flow, program selling in short end post LIBOR set, year-end

buying intermediates.

- Tsy cash/ylds: 2Y 100-00 (2.496%), 5Y 100-16.25 (2.513%), 10Y 103-24 (2.688%),

30Y 107-07 (3.006%)