Solemnity or somnambulant..............>

US TSY FLOWS: Solemnity or somnambulant impeachment day for Pres Trump? No

effect/none really expected from day's impeachment vote in house expected to

pass on along party lines. Mild risk-on as mkts shrugged off impeachment

deliberations, vote later this evening. 

- Midmorning trade headlines: "Mexican president sees prompt U.S. ratification

of USMCA trade deal, Rtrs",  helped rates extend lows, yld curves bear

steepened. 

- Thin holiday markets with small gaps in standing orders blamed for gap lower,

whippy trade followed. No deal-tied hedging, light carry-over swap-tied selling

in 2s-5s. Steepeners in 2s and 5s vs. 10s.

- Heavy Eurodollar and Tsy option volume, main theme: steady Fed through March

2020, two-way low delta wing flow w/better buying upside, chunky vol sales via

Feb 10Y strangles.

- The 2-Yr yield is up 1bps at 1.6328%, 5-Yr is up 3bps at 1.7365%, 10-Yr is up

4.2bps at 1.9222%, and 30-Yr is up 4.8bps at 2.3538%.