Tsys trade weaker but near middle of...>

US TSY FLOWS: Tsys trade weaker but near middle of exceptionally broad range

Friday, yld curves steeper but well off highs. Market exhaustion after another

hectic wk tied to COVID-19 spd. Bank of Canada surprise 50bp cut to .75 due to

mkt stresses. House speaker Pelosi expects to pass virus response bill that

includes paid sick leave and testing.

Pre Trump expected to address nation on COVID-19 response again shortly.

- Huge swings in rates on day, short end outperforming/long end extends sell-off

evident late last two sessions. Early wk chatter pointed to a fund blowing

out/unwinding, more likely domestic/foreign real$ accts selling Tsys to gain

liquidity: balance sheet re-allocations that include SP, FX and swap accts. Note

on Swaps, 30Y spd gapped to new inverted low this morning: -15.50/-81.25,

currently -7.75 at -73.50. Yld spds bear steepening. 

- NY Fed executed six buybacks on the day for a total of $37B, final for $4.001B

in 20-30Y range

- The 2-Yr yield is down 1.5bps at 0.4664%, 5-Yr is up 9.3bps at 0.6961%, 10-Yr

is up 13.8bps at 0.9426%, and 30-Yr is up 10.7bps at 1.5465%.