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Tsys well bid after the bell, just.....>

US TSY FLOWS
US TSY FLOWS: Tsys well bid after the bell, just off top end of range and more
than making up for Tue's sale. Not quite a risk-off/safe haven move despite
surge in gold >1425.0, and weaker equities (ESU9 -19.0). Tsy futures marched
steadily higher since prior to the NY open amid LIGHT volume (TYU appr 955k
after the bell), yld curves mostly flatter.
- Making the rounds late: "U.S.-China Talks Stuck in Rut Over Huawei" DJ. Not
new, but if presents a serious snag in negotiations, could spur safe haven
buying. Otherwise, quiet summer trade on anemic volume.
- Eurodollar futures well bid for the most part after the bell, at/near session
highs, short end under pressure all session, decent to heavy volume as markets
start to scale back aggressive dovish policy calls for 50bps cut at month end.
Note, 3m fra/ois SURGED 2.5 to 25.10H, past mid-May highs.
- Light deal-tied hedging, mixed swap flow with receivers in 2s, 3s and 5s after
better paying in 2s and 4s, also decent 2s5s10s receiver fly.
- The 2-Yr yield is down 2.9bps at 1.8213%, 5-Yr is down 5.2bps at 1.8162%,
10-Yr is down 5.2bps at 2.0503%, and 30-Yr is down 4.8bps at 2.564%.

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