The curve bear steepened on............>

US TSY/RECAP: The curve bear steepened on Wednesday, with T-Notes going out just

off of worst levels.

- Not much reaction to day two of Fed Chair Powell's testimony on the hill as he

noted that the FOMC is nearing consensus on a plan to cease reducing its balance

sheet this year and will likely announce something "fairly soon."

- Hawkish China trade comments from U.S. TR Lighthizer also drew little

reaction.

- U.S. data was weaker on net, with a wider than exp. advance goods trade

deficit leading to several write downs of GDP estimates ahead of tomorrow's

initial estimate.

- Initial pressure on the space stemmed from liquidation in bund futures.

- Flow included stop-outs in the intermediates after fast-money and prop a/cs

were buying, curve steepener unwinds were also noted.

- Deal- & swap-tied selling also added pressure.

- Chinese official PMI data provides the highlight during Asia-Pacific hours.

- T-Notes last 122.10, U.S. 10-Year cash Tsy yields closed at 2.682%.