Rates mildly mixed after the bell,.....>

US TSY FLOWS: Rates mildly mixed after the bell, long end underperforming, short

end Eurodlr futures under duress later in second half. Gist of day: while Brexit

debate and resignation watch was US$ positive earlier, US mkts insulated for

much of session. What really gets domestic markets moving is trade tariff

headlines.

- Decent risk-on move w/equities making new session highs after Lighthizer

comments that some tariffs already on hold (denied late in day). Good feeling

gone late -- risk-on scaled back after Trump admin Ross headline: "U.S. STILL

PLANS CHINA TARIFF INCREASE TO 25% IN JANUARY" bbg.

- Heavy volume day (TYZ>2.2M), two-way flow on net, curve steepener theme

maintained, but off highs (5s30s +1.72 at 42.55); 5s30s steepener Block

1351:22ET (+11,430 FVZ 112-20.25 buy through -19.5 post time offer vs.

* -3,000 USZ 138-26, bid). Heavy Eurodlr, Tsy option flow. Friday: Industrial

Production (0.0%) and Capacity Utilization (78.1%) rounds out the week. Tsy

cash/ylds: 2Y 100-01 (2.854%), 5Y 99-23 (2.935%), 10Y 100-04 (3.109%), 30Y

100-08.5 (3.359%).