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Tsys ratchet higher, extending late....>

US TSY FLOWS
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%)

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