Tsys trading weaker, at/near late......>

US TSY FLOWS: Tsys trading weaker, at/near late session lows, yield curves

steeper/near top end of range (5s30s +3.938, 49.315), decent futures volume

(TYH>1.2M). Equities firmer (SPX +10.0 at 2592.5) -- gained on dovish Fed speak,

US$ index firmer (DXY +.346 at 95.565).

- Limited data due to US Gov shutdown (wkly claims -17k to 216k vs. 220k exp),

but no less than six Fed speakers highlighted by Fed Chair Powell underscoring a

balanced/dovish stance, reiterating "patience" to watch risks play out, data not

showing "indication of slowdown" however.

- Long end sold off/extended session lows after US Tsy $16B 30Y bond auction

(912810E9) tailed, awarded 3.035% rate (3.165% previous; 3.418 in November) vs.

3.020% WI; 2.19 bid/cover (2.31 previous), but strong directs at 15.95% vs.

11.53% prior (12.69% avg). 

First half carry-over bid in rates evaporated as dovish Fed speak got underway,

risk-on tone w/equitys bouncing/trading higher (STL FED BULLARD: FOMC SHOULD

MODERATE RATE HIKE CAMPAIGN). Tsy cash/ylds: 2Y 99-28 (2.563%), 5Y 100-09.5

(2.559%), 10Y 103-11.5 (2.731%), 30Y 106-07.5 (3.054%)