Rate selling leg of Mon's risk-off.....>

US TSY FLOWS: Rate selling leg of Mon's risk-off tone evaporates late (block buy

in WNZ adding impetus to rebound), volumes accelerated late w/TYZ just over 1M.

Meanwhile, equities hold near highs (ESZ9 +16.0), gold sharply lower but off

lows (-23.5). Yld curves mostly steeper w/exception on 3M10Y flattening.

- Not much flow to report in late trade, long end has drifted back to mildly

higher, many sidelined ahead Wed's ADP (+140k est), Fri's NFP (+148k)

- Early risk-on, proved ephemeral, could be related to stories saying US TSY has

no current plans to block China listings on US exchanges. Risk-off never far

away as mkts wary of headline risks related to impeachment inquiry, Brexit,

global trade, et al. Swap spds hold wider by the bell, limited action after

first half moves. Short end holds mildly positive territory after dis-inverting

first time since beginning of the month. Modest swap-tied volume on the session

includes better rate paying in 5s and 7s. Limited deal-tied flow, appears specs

positioning for further widening.

- The 2-Yr yield is down 1bps at 1.6217%, 5-Yr is down 1.6bps at 1.5457%, 10-Yr

is down 1bps at 1.6697%, and 30-Yr is down 1bps at 2.1182%.