Tsys chopped higher on Mon's...........>

US TSY FLOWS: Tsys chopped higher on Mon's shortened Christmas eve session,

equity sell-off continued as late overnight gains reversed (SPX -2.2%: -52.0 at

2369.25 in late trade). 

- Tsy yld curves managed to steepen as intermediates outperformed. Mkts

thin/illiquid amid very light holiday volumes (TYH<500k) on shortened Christmas

eve session (GLOBEX closes at 1315).

- No specific trigger for reversal in stocks, appeared to coincide with NY crew

rolling in, taking advantage of firmer prices to square up. Trading desks still

expressing angst over weekend headlines: Trump asking advisors if he could fire

Fed Chair Powell, Tsy Sec Mnuchin meeting w/6 top biz execs.

- Moderate tail as $38B 2Y note auction (9128285R7) awarded a 2.619% rate

(2.836% on $39B Nov auction) vs. 2.610% WI, bid/cover 2.31 vs. 2.65 previous

(2.84 avg).

- Swap spds tighter across the curve, decent payer/receiver unwinds across curve

noted. Tsy cash/ylds: 2Y 100-09 (2.599%), 5Y 101-09.25 (2.593%), 10Y 103-04.5

(2.758%), 30Y 107-07 (3.005%)