Second consecutive quiet session --....>

US TSY FLOWS: Second consecutive quiet session -- no significant data to trade

off of, mkts ignored trial-balloon headlines from Trump re: possible tax breaks

for consumers and ever present calls for rate cuts from Fed even as economy

remains "very strong". Tsys instead tracked EGB moves earlier in react to Italy

headlines, Italian PM Conte anncd resignation late. Accts plying sidelines ahead

Wed's July FOMC minutes and Jackson Hole eco-symposium Friday.

- Session flow included better buying across the curve earlier from variety of

prop, fast- and real$ accts, carry-over buying in long end from bank portfolios,

swap-tied selling in 2s-5s largely deal-tied hedging. Large curve blocks

included: +11,771 TYU 130-19.5, post-time offer vs. -2,687 WNU 193-24, sale

through 193-29 post-time bid adding to couple larger steepener blocks last week.

Large 5s30s flattener: -17,246 FVU 119-13.5, sell through 119-14 post-time bid

vs. +4,001 USU, 165-08, buy-through 165-04 post-time offer.

- Tsy Sep/Dec roll volume starting to pick up inflating session volume. The 2-Yr

yield is down 3.9bps at 1.5062%, 5-Yr is down 5.7bps at 1.4198%, 10-Yr is down

5.9bps at 1.547%, and 30-Yr is down 5.5bps at 2.0328%.