Risk-on theme gained momentum for......>

US TSY FLOWS: Risk-on theme gained momentum for the second consecutive session

as markets continue to discount pandemic risk from spd of Covid-19 virus. Rates

traded weaker vs. equities making new all-time highs (eminis 3377.5 in late

trade), gold eased 1.55 while WTI crude gained like amount.

- Implied vol under pressure all day, real vol failed to deliver: no substantive

data, nothing substantive from Fed chair as Powell testified to congress for

second day. 

- Decent 10Y auction for a slow day: right on the screw, US Tsy $27B 10Y note

auction (912828Z94) awarded 1.622% rate (1.869% last month) vs. 1.622 WI; 2.58

bid/cover (2.45 previous). Indirects drew 61.32% vs. 55.19%, directs 14.17% vs.

16.11%, and dealers with 23.92% vs. 28.70% prior.

- Dearth of swappable corporate issuance on day after near $24B priced Mon-Tues.

Appr 20,000 FVH Block sales on day weighed on front end.

- The 2-Yr yield is up 1.4bps at 1.4377%, 5-Yr is up 2.3bps at 1.4437%, 10-Yr is

up 2.9bps at 1.6299%, and 30-Yr is up 2.4bps at 2.0903%.