Underscoring mid-cycle adjustment --...>

US TSY FLOWS: Underscoring mid-cycle adjustment -- rates add to mid-week sale --

see-sawing near session lows after the bell. Curves mixed, with 2Y10Y drifting

around inverted levels. Heavy futures volume due to surge in Sep/Dec rolling:

TYU>1.8M, FVU>1.1M.

- Short end near low end of range as market pricing of "mid-cycle" policy

adjustment solidifies over more aggressive rate cuts after hearing from Fed

spkrs' George and Harker earlier. 

- Mkt eager for more clarity from myriad Fed speakers including Fed Chair Powell

at Jackson Hole econ summit tomorrow. Agenda to be posted tonight at 2000ET on

KC site: https://www.kansascityfed.org/

- Equities buffeted earlier, sold off in partial react to Fed Harker comments,

weaker than expected IHS Markit PMI/Manufacturing sub-50 at 49.9, as well as

German headline saying "BUNDESBANK SEES NO NEED FOR GERMAN FISCAL STIMULUS" Bbg.

- The 2-Yr yield is up 5.9bps at 1.5713%, 5-Yr is up 3.4bps at 1.467%, 10-Yr is

up 2.4bps at 1.5791%, and 30-Yr is up 2.5bps at 2.062%.