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Tsys were settling in around late......>

US TSY FLOWS
US TSY FLOWS: Tsys were settling in around late session lows until last few
minutes amid reports of explosions hitting Baghdad's Green Zone. Tsys moving off
lows w/Gold, equities trim gains. Most action/heavy volume occurred late Tue:
sharp risk-off/safe-haven bid on retaliatory missiles launched by Iran against
two US airbases in Iraq. Strikes on US air bases miraculously resulted in zero
casualties, 10YY fell to 1.7065% low on early overnight action, support
evaporated steadily on heavy volumes, TYH>2.8M by the close.
- Risk-on gained momentum in the minutes after Pres Trump address. Note: Tsy
futures all the way back to levels just prior to US strike that killed Iranian
Gen Soleimani; equities climbing higher (ESH0 +25.5). Another weak Tsy auction:
second consecutive tail as US Tsy $24B 10Y note auction/re-open (912828YS3)
awarded 1.869% rate (1.842% last month) vs. 1.852% WI; 2.45 bid/cover (2.43
previous). Indirects drew 55.19% vs. 56.12%, directs 16.11% vs. 19.35%, and
28.70% for dealers vs. 24.53% prior.
- The 2-Yr yield is up 3.4bps at 1.5745%, 5-Yr is up 4.4bps at 1.6564%, 10-Yr is
up 4.9bps at 1.8668%, and 30-Yr is up 4.8bps at 2.353%.

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