Trades heavy late, long end............>

US TSY/RECAP: Trades heavy late, long end extending session lows by the bell on

heavy futures volume (TYH>1.8M), choppy day in lead-up to Fri's NFP/AHE data

release (185k est/0.2% est respectively). Large block sale (-15k TYH 121-07)

sell through an -08 bid at time of post helped trigger move to new lows, 30Y yld

topping 3.01% first time since May 2017. 

- Tsys followed weaker EGBs early as Spanish, French supply weighed.

Limited/delayed react to early data, futures inching off lows, long end still

underperformed. Modest two-way midmorning flow, fast$ buyers after Dec construct

spending +0.7%. Decent deal-tied hedging in works. 

- New session lows after midday amid continued bank portfolio and real$ selling

10s and 30s, fast$ and prop selling intermediates. Dip buyers 30s and chatter of

flattener unwinds. - Decent early Eurodollar volume in Whites through Greens

with levels off session lows. Decent spd action, over 40,000 Red Dec'19/Green

Dec20 spds bought at 0.105. Swap spds widened, spd curve flatter

- T-Notes down 4 ticks at 121.03, 10-Year yield last up 0.2bp at 2.792%