Rates trade steady/mixed, short end....>

US TSY FLOWS: Rates trade steady/mixed, short end under pressure in Tsy and

Eurodollar futures, Tsy yld curve flattening w/3M10Y back near middle wide range

for month, near -25.0 (-55.0 low/-5.0 high). 

- Tsys decouple from EGBs, after tracking Europe bourses Mon, Tsys inched off

lower levels overnight, yld curves flattening w/long end outperforming despite

equities trading firmer (ESZ9 +10.0), crude weaker (WTI -.50), Gold weaker

(-1.67).

- Muted second tier data, no Fed speakers as yet today, focus remains on trade

US/China trade, Brexit news w/PM Johnson's prorogation deemed unlawful. 

- Do get $40B 2Y Note auction today along w/more incoming corp supply generating

hedging flow in shorts to intermediates. Prop selling short end, real$ +10s,

real- and fast$ buying long end, 10s30s flatteners.

- The 2-Yr yield is up 0bps at 1.6814%, 5-Yr is down 1.7bps at 1.5856%, 10-Yr is

down 1.9bps at 1.7077%, and 30-Yr is down 2.1bps at 2.1518%.