Tsys trading near late session.........>

US TSY FLOWS: Tsys trading near late session highs, see-sawing higher most of

session after brief mid-morning bout of selling. Risk-off tone gained momentum

mid-morning into midday as equities slid lower (SPX -34.0, 2771.0). Sources

reported largest sell program since mid-February added impetus to move, asset

allocation out of equities into Tsys at work.

- Little to no react to earlier second tier data, focus on US/China trade

w/headlines heralding a deal soon (watching if/when some official on either side

throws cold water on positive sounding headlines). Some desks cite increased

oversight Democratic-driven oversight of Trump admin as well.

- Tsy yield curves continue to inching flatter. Decent deal-tied hedging added

to flow, near $12B in issuance to price, $5B Pfizer 5-part lead in size, TD

Banks, MUFG, John Deere Capital added debt in fronts to intermediates.

- On tap for Tue: March Redbook retail sales; February Markit Services Ind;

building permits revision for Feb and new home sales for Dec (590k est); Feb ISM

Non-manf Index (57.4); Mar IBD/TIPP Optimism Index. Tsy cash/ylds: 2Y 99-29.38

(2.540%), 5Y 99-09.25 (2.526%), 10Y 99-05.5 (2.719%), 30Y 98-09 (3.088%).