Rates weaker but off lows after the....>

US TSY FLOWS: Rates weaker but off lows after the bell. Aside from earlier China

"Pork & Beans" trade related headlines no mkt moving headlines reported as Tsys

inched off pre-auction lows as equities trimmed gains. Sources noted decent

sized sell program (1,149) went through, equity move lead Tsys bounce.

- Chatter but NO confirm of foreign real$ and global macro fund selling in the

first half. Better algo-driven selling on headlines and tweets noted by several

desks, in addition to prop, fast- and real$ selling in intermediates, swap-tied

selling in 10s and 30s along with pre-auction short sets ahead the 30Y R/O.

Several decent Dec 10Y sell blocks helped extend session lows. Others reported

steepener unwinds/taking profits from some accts while others unwind 3M10Y

flatteners as spd has steepened some 18.0bps from Monday's low around -21.5.

Option flow mixed, two-way with better buyers of wings (OTM puts/calls).

- Small tail and new low yld, US Tsy $16B 30Y bond auction (912810SJ8) awarded

2.170% (2.270% last month) vs. 2.167% WI; w/ 2.25 bid/cover (2.22 prior). The

2-Yr yield is up 6.7bps at 1.5322%, 5-Yr is up 7.5bps at 1.4787%, 10-Yr is up

7.6bps at 1.6595%, and 30-Yr is up 6.9bps at 2.1531%.