Tsy continued to extend session........>

US TSY FLOWS: Tsy continued to extend session highs midway through the second

half -- no visible means of support as participants struggled to come up with

cogent reason for the bid across many asset classes, not just Tsys. 

- Tsys did pare gains amid positive sounding China trade headlines from Pres

Trump (little substance but great deal very likely), Tsy Sec Mnuchin: CHINA HAS

AGREED TO BUY UP TO $1.2 TRILLION IN U.S. GOODS - CNBC (but China had made the

$1.2T commitment late last year); CNH/US$ climbed to new high of .1492 after Bbg

headline: "U.S., CHINA REACH FINAL AGREEMENT ON CURRENCY, MNUCHIN SAYS".

- Tsy futures volume inflated by ongoing/heavy March/June rolling ahead the Feb

28 first notice date. Very early month end buying, no deal-tied flow; March Tsy

options expire today, adding to volume trade. Curves reversed from earlier

flatter levels amid modest two-way.

- Not much of react to several Fed speakers on the day though Tsys climbed

higher across the curve on commet from Clarida re: yield curve control.

- Tsy cash/ylds: 2Y 100-00.62 (2.487%), 5Y 100-05 (2.464%), 10Y 99-24.5

(2.650%), 30Y 99-20 (3.018%).