Second half trade so quiet since the...>

US TSY FLOWS: Second half trade so quiet since the 3Y auction tailed, easy to

overlook that Tsy futures have finally broken range, extending session lows, yld

curves bear steepening again. Not a risk-on moment w/equities weaker (ESH0 -6.0)

and Gold higher (+4.06), Tsys partially pressured by second day of heavy

deal-tied hedging. While underlying geopol risk remains lack of visible

retaliation/further offensive moves is spurring some unwinding safe haven

support.

- Second consecutive session of better than expected corporate issuance: $17.85B

total, $45.5B two-day total generated decent hedging flows, swap-tied paying.

Tsy futures Block sale: -5,000 FVH 118-31.5, sale through -31.75 post-time bid.

- US Tsy $38B 3Y Note auction (912828Z29) tailed: awarded 1.567% (1.632%

previous) vs. 1.562% WI, bid/cover 2.45 vs. 2.56 previous. Indirects drew 47.50%

vs. 49.08% prior, directs w/ 16.75% vs. 23.83% prior, dealers w/ 35.75% vs.

27.09% prior.

- The 2-Yr yield is down 0bps at 1.5444%, 5-Yr is up 1.3bps at 1.6188%, 10-Yr is

up 1.8bps at 1.8265%, and 30-Yr is up 2.1bps at 2.3066%.