Tsys were weaker but off midday lows...>

US TSY FLOWS: Tsys were weaker but off midday lows by the close. Salient moves

driven by US/China trade headlines on day, risk-on around midday after trade

officials relayed hope a deal may be signed in November, modest unwind late as

one US official expressed interest in tougher language related to intellectual

property. 

- Several large Block sales in 2-, 5- and 10Y futures helped trigger the

sell-off around the midmorning headlines: "NAVARRO: POSSIBLE SIGNING OF

U.S.-CHINA PHASE 1 DEAL IN NOV" Bbg.

- Session flow included light month end buying and two-way option related

hedging and position squaring ahead the weekend, fast$, prop and program acct

related selling into early strength. Otherwise, markets remained choppy on thin

participation, volumes slightly above week's moribund avg.

- The 2-Yr yield is up 4.4bps at 1.6216%, 5-Yr is up 3.9bps at 1.6225%, 10-Yr is

up 3bps at 1.796%, and 30-Yr is up 2.6bps at 2.2884%.