Rates weaker after the bell, holding...>

US TSY FLOWS: Rates weaker after the bell, holding a narrow range after bouncing

off brief session lows around midday after some dueling headlines between Fed

Kaplan ("limited cut") and Pres Trump (could impose more tariffs on China if

wanted to). That said, futures near middle of overall session range after

gapping lower on better than expected retail sales and IP data.

- Little react to largely iterative comments from the Fed chair expressing

concerns over global uncertainties, as well as from Chi Fed pres Evans:

"FORECAST 50 BP OF ACCOMMODATION TO LIFT INFLATION" and "SEES COUPLE OF 2019 FED

RATE CUTS JUST BASED ON INFLATION". Other than initial data, Tsys saw largest

react to Kaplan comments as futures extended lows, 3M10Y gapped to -1.156.

- Flow included decent deal-tied hedging after $8.4B supra-sovs priced, fast-

and real$ selling post data, prop and fast$ buying dips.

- Upside insurance call buying less one-way, seeing concerted pick-up in

downside put and put spd buying since stronger than anticipated data. The 2-Yr

yield is up 3.1bps at 1.86%, 5-Yr is up 3.7bps at 1.881%, 10-Yr is up 3bps at

2.1183%, and 30-Yr is up 1.7bps at 2.6275%.