Rates weaker heading into the NY.......>

US TSY FLOWS: Rates weaker heading into the NY session, Tsy futures just off

early London lows on moderate volume (TYZ>345k), yld curves little steeper;

equities firmer (ESZ9 +9.5), bank shares doing well.

- Generally quiet start to week w/no data to entertain Mon, Fed entered media

blackout early Saturday, 3- and 6M bill auctions today. Brexit headlines remain

focus -- nascent optimism despite failure to pass deal over weekend (Letwin

amendment) and formal UK request of extension to EU. The ride continues amid

chatter deal will still be reached by end of week.

- Mixed/two-way overnight flow had better sellers 10 and 30s late Asia hours,

prop and fast$ buying intermediates during early London session. Limited

deal-tied flow as issuers remain sidelined as latest earnings cycle continues.

- The 2-Yr yield is up 1.7bps at 1.5902%, 5-Yr is up 1.5bps at 1.5825%, 10-Yr is

up 2.3bps at 1.7764%, and 30-Yr is up 3.1bps at 2.2797%.