Rates trading firmer but have been.....>

US TSY FLOWS: Rates trading firmer but have been steadily paring gains last four

hours -- around the time 10YY fell to Oct 2017 levels, currently -.0282 at

2.2921. Despite bounce in equities back to steady, general risk-on tone

overnight tied to ongoing US/China trade angst.

- Tsy yld curves bull flattening, 3M10Y well inverted but off lows (3M10Y -2.961

to -4.909; L:-8.391/H:-4.27). CBoE vol index (VIX) firmer but near lows (+0.69

at 16.54; 16.32L/17.05H); equities clawing back to steady.

- Overnight flow includes heavy Jun/Sep Tsy futures rolls, real$ sold 2s, 7s and

10s, swap-tied selling in 2s, pre-auction short sets ahead 13- and 26W bills

staggered with 2- and 5Y notes, steepeners out the curve fading this morning's

bull flattening.

- On tap for Tuesday: FHFA Home Price and Case-Shiller Home Price Indexes; May

Conference Board consumer confidence; Dallas Fed manufacturing index.

- The 2-Yr yield is down 1.3bps at 2.1515%, 5-Yr is down 2bps at 2.1004%, 10-Yr

is down 2.3bps at 2.2973%, and 30-Yr is down 2.3bps at 2.7285%.