Tsys hold marginally weaker levels.....>

US TSY FLOWS: Tsys hold marginally weaker levels after midday, off session lows

on rather decent volume (larger than avg volume occurred ahead of the NY open).

Despite jump in data releases -- rather muted trade the day after FOMC. 

- Final leg wk's Tsy supply tailed (2 out of 3) Treasury prices trading narrowly

mixed after $31B 7Y auction awarded 3.034% rate vs. 3.030% WI (previous $31B 7Y

awarded 2.844%).

-  Bid for Tsys left the building in early trade, extended session lows, yld

curves rebound/little steeper. unconfirmed chatter asset allocation, buying

equities/selling Tsys underscored late morning equity outperformance tempered by

month end extension/buying. Large block/crosses: Tsy curve flattener -20,893 FVZ

112-12.25 vs. +3,734 WNZ 154/07; Eurodollar futures +85k EDZ9/EDH0 at 0.025,

adding to appr +65k on screen -- ongoing theme as Reds remain off inversion

since last week. More modest two-way in second half, deal-tied hedging short end

- Political headline distractions from DC: SCOTUS hopeful Kavanaugh accuser

hearing. Note, China out next week for National Day holidays will dampen volume

a little.