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

US TSY FLOWS: Rates mixed after the bell, short end underperforming while 30Y

bonds come to life late -- pushing past post NFP gap high, yld curves bull

flattening. Nothing new from several Fed speakers including Fed chair Powell who

reiterated economy faces risks but remains in a "good place."

- Generally quiet end to wk where risk-off remained primary theme. Barring Fri's

mixed employment data, weak data coupled with ongoing headline risk from

US/China trade and constantly evolving impeachment inquiry of Pres Trump saw

Eurodollar futures surge higher across the strip.

- Big gap range post data, futures surge to new highs within seconds of nearly

extending session lows. Large flattener blocks: -54k TUZ vs. +25k TYZ (appr DV01

$2.1M), as well as 2s5s: -27.9k TUZ vs. +23.1k FVZ ($1.15M DV01). 

- Heavy option positioning for lower ylds as chances of third rate cut holds

around mid-90%. Implied vol cratered w/data, speaker risk in the rear view.

- The 2-Yr yield is up 0.4bps at 1.3936%, 5-Yr is down 1.5bps at 1.3325%, 10-Yr

is down 2.2bps at 1.5119%, and 30-Yr is down 2.1bps at 2.011%.