Tsy ground higher on back of weaker....>

US TSY FLOWS: Tsy ground higher on back of weaker consumer confidence and

downturn in equities. Downturn in equities as back of FANG stocks hit earlier

(Apple lower on day, reports earnings after close).risk-off buying pushes

futures to new session highs.

- Despite the disk-off tone on heels of weak consumer confidence data, ranges

are moderate with many squared up and plying sidelines ahead data and risk

events in latter half of week (ADP private jobs, FOMC, FOMC).

- Earlier flow includes prop, fast$ selling 5s and 10s, leveraged acct two-way

in long end. Moderate deal-tied selling vs. option acct buying in fronts to

intermediates. Light curve flow two-way. Better buyers in belly to long end late

trade, real- and fast$ in 5s and 10s.

- $32B 7Y note auction (9128286A3) awarded 2.625% rate vs. 2.622% WI (previous

$32B 7Y awarded 2.680%);

- Tsy cash/ylds: 2Y 99-27.62 (2.569%), 5Y 99-25 (2.545%), 10Y 103-17 (2.710%),

30Y 106-15 (3.042%).