US rates bid but well off late.........>

US TSY FLOWS: US rates bid but well off late morning highs on a rather muted

week opener, yld curves steeper/well off flatter levels in first half. Equities

on session highs (ESZ9 +10.0), crude firmer (WTI +.40), Gold stronger (+6.35).

- Early Tsys rally mirrored EGBs after weaker than expected French, German and

Eurozone flash PMI. Tsys held narrow range through midmorning, gaining on mixed

US Markit PMI manufacturing/services data. Fed speak: StL Fed Bullard would cut

another 25bp, citing trade war and willingness to "take out some insurance

against" potential slowdown. On  flipside, StL Fe Williams said Fed "should

conserve firepower," as "reducing policy room may prompt risky QE in downturn."

- Unexpected pick-up supra-sov issuance w/Abu Dhabi issuing $10B 3-part debt.

Week note auctions resume Tue w/$40B 2Y. Early front to intermediate receiving

gave way to rate paying across the curve. 

- Quick O/N repo operation interest receding w/$65.750B submitted vs. $75.550B

Fri ($83.875B high on Thu). The 2-Yr yield is down 1bps at 1.6729%, 5-Yr is down

1.3bps at 1.587%, 10-Yr is down 1bps at 1.7111%, and 30-Yr is down 0.1bps at

2.1602%.