Trade headlines continue to drive......>

US TSY FLOWS: Trade headlines continue to drive markets: Early risk-on

head-fake: Overnight risk-on tone crushed just after opening bell on CNBC

twitter post of all things suggesting Beijing pessimism over reaching a

trade-deal with the Trump admin.

- Rates surged to new highs as equities extend sell-off, early flow included

prop and fast$ buying short end, real$ buying 10s, program buying long end, mild

deal-tied selling across the curve. Decent deal-tied hedging.

- Pick-up in Dec/Mar Tsy futures roll volume ahead Nov 29 first notice. Gradual

retreat in Tsys during second half, light overall volume.

- Little react to surprise Fed Chair Powell meet w/ Tsy Sec Mnuchin and Pres

Trump, "POWELL STRESSED POLICY DEPENDENT ON INCOMING DATA". No react to FED'S

MESTER SAYS SHE PREFERRED NOT TO CUT INTEREST RATES AT THE FED'S LAST MEETING"

Rtrs. October FOMC minutes release on Wednesday.

- The 2-Yr yield is down 1.6bps at 1.5939%, 5-Yr is down 2bps at 1.627%, 10-Yr

is down 2.1bps at 1.8101%, and 30-Yr is down 0.8bps at 2.2968%.