Tsys ratchet higher, extending late....>

US TSY FLOWS: Tsys ratchet higher, extending late overnight highs in lead-up to

NY open, supported as equities reversed earlier gains, chop lower/bouncing

(-17.0 last at 2396.5, 2390.75L). Mkts thin/illiquid amid very light holiday

volumes (TYH<145k) on shortened Christmas eve session (CME floor trade close at

1300ET, GLOBEX at 1315). 30YY back below 3%, 2.9972% last.

- 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.

- Very light overnight trade, better bid in intermediates to long end over last

hour, props +10s, foreign acct buying 10s and 30s, light steepener interest

earlier in 2s vs. 5s and 10s.

- Swap spds tighter across the curve, light spd curve steepener and rate

receiving in 5s.

- Tsy cash/ylds: 2Y 100-07.75 (2.618%), 5Y 101-07.75 (2.603%), 10Y 103-04.5

(2.758%), 30Y 107-13.5 (2.996%)