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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
- 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
- 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%.

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