Rates chopped to session highs after...>

US TSY FLOWS: Rates chopped to session highs after the closing bell Wednesday,

largely virus and political headline driven on an otherwise thin participation

session.

- Virus case levels helped spur several rounds of de-risking earlier in the

first half. Support evaporated past midday but bounced after the 20Y R/O note

auction traded through (awarded 1.312%). Late risk-off pushed futures back to

top of the range (headlines from former Trump Admin Bolton alleged Trump asked

China Pres Xi for help in re-election). 

- Early risk-off as Texas virus related hospitalization continue to rise.

Two-way flow on net w/decent volumes, sources reported fast$ buying 5s and 10s

recently, deal-tied selling into bounce. 

- Fed Chair Powell re-read prepared testimony to House Fncl Services Comm. Aside

from deal- and pre-auction hedging and light option related flow, modest pick-up

in selling intermediates-long end as equities rebound higher briefly.

- The 2-Yr yield is down 0.8bps at 0.1912%, 5-Yr is down 0.8bps at 0.336%, 10-Yr

is down 2.6bps at 0.7265%, and 30-Yr is down 2.5bps at 1.5179%.