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Really decent futures volume by........>

US TSY FLOWS
US TSY FLOWS: Really decent futures volume by midday (TYZ>1.7M) but pace has
slowed since London went home. Rates trade higher, off late morning highs
(trimmed gains as equities bounced off lows, buy program suspected).
- Risk-off tone as rates chopped higher after the open/equities sold off (SPX
2703.75L). Well below exp September new home sales -5.5% to 553k SAAR also
supportive. Ongoing exogenous factors: Italian budget angst and hard Brexit
concerns.
- Flow through midday included various acct sellers of 10's, forward rollers
into WI 5s, fast$ 5-30 flatteners fading two-day move. Moderate deal-tied flow
and pre-auction short sets ahead the $39B 5Y auction. Heavy option volume w/flow
more mixed after better upside call buying Tue.
- Fed's Kaplan sees three hikes through end of 2019. Of note, 
- Tsy cash/ylds: 2Y 100-01 (2.855%), 5Y 99-19 (2.962%), 10Y 97-29 (3.122%), 30Y
93-20 (3.338%).

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