Trades modestly higher after the.......>

US TSY FLOWS: Trades modestly higher after the bell, after revisiting early

highs ahead minutes -- bid evaporated on hawkish tone. While majority Fed voters

saw no rate change in '19, "patience" stance may need review. Couple equity sell

programs post minutes but rebound/extend session highs after rate close.

Equities firm (SPX +10.0, 2892.5); US$ index back near lows (DXY -.113, 96.893).

- Earlier, post CPI chop, Tsy rally gained traction w/focus on core slowing for

second month in a row (apparel drop -1.9% largest since 1949), less consumer

inflation pressure = weaker demand raising concern over recession (3M10Y

flattened. Decent two-way trade in fronts to intermediates, hedge fund selling

10s, fast$ buying TIPs, prop and real$ buying intermediates to long end as Tsys

following EGBs higher.

- On tap for Thu: Wkly claims; Mar final PPI; wkly securities holdings. US TSY

$16B 30Y bond auction (912810SF6). Fed speakers: NY Fed Pres Williams, StL Fed

Pres Bullard, Fed Gov Bowman. The 2-Yr yield is down 2.9bps at 2.3212%, 5-Yr is

down 3.2bps at 2.2737%, 10-Yr is down 3.2bps at 2.4685%, and 30-Yr is down

1.9bps at 2.8954%.