Tsy futures broke higher in late.......>

US TSY FLOWS: Tsy futures broke higher in late trade, several factors at play w/

equities pared gains: Sep emini futures tested 3222.0 resistance couple times

before retracing; TSLA shares reversed gains/traded lower before bouncing; LA

and SD schools to go online in fall while CA cases continue to rise (+8,358 new

cases vs. 7,800 14-day avg. - Contributing to late de-risking, headline "*U.S.

DENOUNCES CHINA'S CLAIMS TO S.CHINA SEA AS 'UNLAWFUL'" Bbg adding to tensions.

- Rates broadly weaker coming into session, sources noted domestic/foreign bank

buying short end ove, prop/fast$ selling intermediates to long end, light

deal-tied rate locks in the mix.

- Off lows ahead midday, sources noted Decent two-way chop (TYU>420k) as rates

absorb positioning flow ahead expected flurry of earnings from mostly financial

names on wk (Tues: Citi, JPM, Wells Fargo; Weds: BNY Mellon, GS, UnitedHealth;

Thurs: BofA, J&J, MS, Netflix; Fri: BlackRock, State St). Rate locks tied to

sovereigns noted in fronts to intermediates. 

- The 2-Yr yield is up 0.6bps at 0.1589%, 5-Yr is down 1bps at 0.296%, 10-Yr is

down 0.7bps at 0.6381%, and 30-Yr is down 0.1bps at 1.3353%.