Strong risk-off tone gained momentum...>

US TSY FLOWS: Strong risk-off tone gained momentum as world trade/tariff angst

returned and virus metrics continued to climb:

- California +7149 vs. +5019 Tue, Florida +5.3% vs. +3.7% 7-day avg, Oklahoma

reported largest single day jump, while Houston ICU capacity fell to one day vs.

11 the prior session. Meanwhile, Pres Trump moved to end Federal funding for

virus testing sites.

- Early two-way flow on net with prop buying intermediates o long end, real$

buying long end, light corp-tied hedging, pre-auction short sets w/ mkts absorb

another bout of Tsy supply including $47B 5Y notes.

- Second decent auction, US Tsy $47B 5Y Note auction (912828ZW3) stops through

w/ award rate of 0.330% (0.334% last month) vs. 0.335% WI; 2.58 bid/cover vs.

2.28 prior. Indirects drew 62.26% vs. 57.34% prior, directs 15.78% vs. 10.83%

prior, dealers 21.96% vs. 31.83% prior.

- The 2-Yr yield is unchanged at 0.1857%, 5-Yr is down 1.4bps at 0.3155%, 10-Yr

is down 3bps at 0.6823%, and 30-Yr is down 4.7bps at 1.4443%.