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Tsys trading weaker after the bell,....>

US TSY FLOWS
US TSY FLOWS: Tsys trading weaker after the bell, off late overnight lows amid
modest futures volume (TYM<275k by the bell), yld curves mixed but near steady
after Mon's flattening.
- Ongoing US/China trade headline watch: US Secretary of State Pompeo saying
Pres Trump "will walk" if China trade deal not "perfect" in interview w/Sinclair
media group this morning, follows up with more pragmatic tone: "will keep
banging away at it" if deal "doesn't work". China headlines overnight re: tough
economic challenges ahead. Premier Li Keqiang said in SOTU address.
- Modest overnight volume, two-way positioning tending towards better selling
ahead headline data second half of week, prop buying intermediates vs. macro
fund and deal-tied sales,
- Tsy cash/ylds: 2Y 99-28.5 (2.555%), 5Y 99-06 (2.548%), 10Y 99-00 (2.739%), 30Y
97-31 (3.104%).

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