Rates trade weaker by the bell,........>

US TSY FLOWS: Rates trade weaker by the bell, extend post-minutes lows, curves

steepening out, equities weaker but off steeper losses in first half, US$ index

near late highs (DXY +5.62, 95.610).

- Minutes highlights: many project above-neutral rates, need for temporary

restrictive policy, 'accommodative' cut not signal of policy change while

tariffs, trade uncertainty pose downside risks.

- Exp this afternoon: Tsy dept FX policy report on major trade partners w/US.

- Relative quiet as accts plied sidelines ahead Sep FOMC minutes, rates extended

session lows after release w/program buyers lifting levels off lows, curves

pared flattener move. 

- Pre-release: Tsys receded as equities posted gains briefly, flow included prop

and fast$ selling 3s-5s, real$ selling 10s on modest size, 5s10s flatteners from

props earlier curves off lows. Heavier short end selling, Dec hike probability

on the rise.

- Tsy cash/ylds: 2Y 99-24 (2.878%), 5Y 99-08 (3.037%), 10Y 97-15 (3.177%), 30Y

93-16 (3.345%).