Tsys trading weaker on light...........>

US TSY FLOWS: Tsys trading weaker on light overnight volume (TYH<220k) to kick

off the final week of 2019. Does not appear to be headline driven, rates

followed EGBs lows, 10YY climbed to 1.9244% high from overnight low of 1.8700%.

Yld curves bear steepening, w/ 3M10Y  +4.062, 35.458 (L: 29.078 / H: 35.81)

- Rates more than reverse Fri's move, perhaps tied to China switch from "main

base rate to the Loan Prime Rate (LPR) from its previous benchmark rate which

was 20 bps higher," sources note -- "an ease which is not an ease, analogous to

a monthly schedule of t-bill buying not being QE".

- Limited overnight volume w/better bank and foreign acct selling intermediates

to long end, prop buying short end, 2s10s and 5s10s steepeners. Some two-way

option related positioning with Feb options taking lead serial.

- The 2-Yr yield is up 1.4bps at 1.5951%, 5-Yr is up 2.9bps at 1.7074%, 10-Yr is

up 4.2bps at 1.9174%, and 30-Yr is up 4.9bps at 2.3647%.