Tsy futures weaker/off lows on final...>

US TSY FLOWS: Tsy futures weaker/off lows on final session for 2019; extending

past overnight lows, large Feb 10Y call spd sale hedges contributed to the

downdraft amid thin holiday markets; Extend lows yet again after consumer

confidence data (126.5 DEC V NOV 126.8).

- Yield curves continue to march steeper as recession concerns evaporate into

year end. Current levels near early 2018 levels (2s30s) to late fall of 2018

(2s10s).

- Tsy futures have bounced off lows around midmorning, sources reporting misc

acct buying in 2s and 5s, while leveraged$ selling noted in 2s and 30s after

better selling in 10s from option accts on heavy screen trade trade TYG call

spds.

- Swap spds: short end pulled spds wider, 7-month highs as 2Y spd climbs from

near inversion on Dec 10 to nearly +12.0 currently, largest 1-month move since

March 2018. Near mid-June highs, the 30Y spd still remains inverted.

- The 2-Yr yield is down 0.2bps at 1.5631%, 5-Yr is up 1.6bps at 1.6861%, 10-Yr

is up 3.7bps at 1.9157%, and 30-Yr is up 5bps at 2.3793%.