Risk-off start to 2019. Long end.......>

US TSY FLOWS: Risk-off start to 2019. Long end Tsys surged late Wed, extending

session highs, partly triggered by late reversal in equitys after stocks managed

to recover/trade higher around midday. Tsy yld curves bull flattened, more than

making up for Mon's steepening on air. In other words, the trend is not your

friend of late.

- US$ index bid (DXY +.716 at 96.801), US$/Yen broke 109.0 to 108.71 low (late

May'18 lvls); sovereign spds wider vs. Bunds. VIX reversed early gains (-1.22,

24.20) after getting hammered late last few sessions (topped 36.0 last Wed). 

- Moderate futures volume by the bell, TYH>1.3M. Slow day for data ahead flood

of data next two days, Dec employ figures Fri (+180k est; AHE 0.3%). Fed speak

Friday as well w/Fed chair Powell and former chairs Yellen and Bernanke on

mon-pol at Atl media event. Democrats take control of House Thu

- Flow included better fast$, real$ and levered acct buying intermediates to

long end, fast$ and props two-way in short end. Decent two-way swap flow in

2s-5s. Tsy cash/ylds: 2Y 100-00 (2.498%), 5Y 100-19.75 (2.491%), 10Y 104-02.5

(2.650%), 30Y 107-28.5 (2.973%)