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Rates bid after the bell but support...>

US TSY FLOWS
US TSY FLOWS: Rates bid after the bell but support gradually evaporating ahead
equity close. Tsy yld curves mixed, 3M10Y extended inversion to new 12 year lows
is nearly steady at moment (L:-14.262/H:-8.404). CBoE vol index (VIX) firmer but
well off highs (+0.34 at 17.84; 17.62L/19.04H); equities weaker but well off
lows (ESM9 -23.0).
- Rates surged into midday as risk-off gained momentum, mkt jitters headed into
Spec Counsel Mueller statement re: Russia probe. Mueller announced resignation
from DoJ while reiterating report finding.
- Tsy 7Y note auction (9128286X3) tails -- awarded 2.144% rate vs. 2.125% WI;
2.30 bid/cover vs. 2.49 prior (2.61 avg). Likely month end flow at work as well,
portfolio rebalance support resumed late.
- On tap for Thursday: Weekly jobless claims; Q1 GDP second estimate; Apr
advance goods trade gap, wholesale & retail inventories; NAR pending home sales
index; natural gas and crude oil stocks.
- The 2-Yr yield is down 1.9bps at 2.105%, 5-Yr is down 0.3bps at 2.0661%, 10-Yr
is down 0.5bps at 2.2605%, and 30-Yr is down 1.3bps at 2.6911%.

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