Trading mixed after the bell, long.....>

US TSY FLOWS: Trading mixed after the bell, long end weaker all day but off

second half lows on heels of Trump headlines re: China and looking to announce

sometime Friday a response to actions in HK. Rates bounced, equities reverse

gains, USD/CNH gapped >80 points (from 7.1608 to 7.1701) but paring back to

7.1662 last.

- Tsys started weaker post data dip with  durables and weekly claims not as bad

as estimated; yld curves held steeper levels w/long end underperforming all

session.

- Reminder, Sep Tsy futures take lead quarterly position Friday while Jun

futures won't expire until mid-late June: 10s, 30s and Ultras on 6/19; 2s & 5s

6/30. 

- US Tsy $38B 7Y Note auction (912828ZS2) tailed w/ 0.553% awarded rate (0.525%

last month) vs. 0.547% WI; 2.55 bid/cover vs. 2.56 prior. Indirects drew 63.58%

vs. 66.40% prior, directs 12.39% vs. 12.30%, dealers 24.02% vs. 21.30%.

- The 2-Yr yield is down 1bps at 0.1701%, 5-Yr is down 1.3bps at 0.3352%, 10-Yr

is up 1bps at 0.6917%, and 30-Yr is up 1.8bps at 1.4579%.