Tsy futures continued to extend........>

US TSY FLOWS: Tsy futures continued to extend session highs to just past midday

as equities tumbled (ESZ9 -45.0) triggered largely on early US/China trade

headlines that US going forward with Dec 15 tariffs. Levels off extremes after

the bell (ESZ9 bounces to -22.0) while Tsy futures remained well bid across the

board, little off highs -- but more than making up for Mon's sale as Trump tried

to downplay importance of getting trade deal done quickly. 

- Sharp Eurodollar futures rally on heavy volume (>28k 2Y bundles; >24k Red

packs), rally more than 2x Mon's sale. late block +10k EDZ9/EDF0 spds +0.077.

- Swap spds reversed early widening to tighter by mid-am amid better

receiving/payer unwinds/stop-outs across the curve. Short end held tighter late

5s-30s rebounded wider amid late swap-tied selling as Tsys support cooled. 

- While Fed remains in blackout through Dec 12, at least mkts will see Nov ADP

private payrolls (125k prior, 140k est) early Wed. The 2-Yr yield is down 6.2bps

at 1.538%, 5-Yr is down 10.3bps at 1.5392%, 10-Yr is down 10.5bps at 1.7139%,

and 30-Yr is down 10bps at 2.1664%.