Tsys extend early overnight highs......>

US TSY FLOWS: Tsys extend early overnight highs across the board following

weaker than expected Dec housing starts, yld curves mostly steeper. Mild risk-on

unwind earlier w/equities weaker as US/China trade optimism loses some momentum

overnight. US$ index choppy, receded as Pound sterling gapped higher on hint of

Brexit delay earlier

- Mkts eager for Fed Chair Powell semiannual monetary report to Congress,

looking for more clarity on policy, timing of balance sheet runoff end. 

- Overnight flow included rate receiving in 2s, bank portfolio buying in 5s,

fast$ buying in 10s earlier, flattener unwinds, real$ and leveraged acct buying

long end, ongoing March/June Tsy futures rolling.

- Tsy cash/ylds: 2Y 100-00.88 (2.484%), 5Y 99-20.5 (2.450%), 10Y 99-27 (2.641%),

30Y 99-23 (3.013%).