***US Tsys moved sharply higher on.....>

US TSY/RECAP: ***US Tsys moved sharply higher on Thursday, viewing 2019 under a

more dovish lens than first seen in the wake of FOMC on Wednesday.

- Multiple factors added to the rate rally, including a weaker USD vs. JPY &

$50bln in tariffs against China spurring risk off flow as equities backed off

sharply. However. this was met with notable Tsy sell side flow in the form of

fast & real money accounts selling 5s & 10s, in both cash & futures after the

tariff announcement. This allowed a degree of profit taking to creep in with a

2.80% 10-Year yield practically signalling the low of the day.

- This was followed by tactical curve steepener unwinds, better buying from fast

& real money accounts alongside bank portfolios in 5s, 10s & 30s. Decent

deal-tied flow was also apparent, in lieu of a pick-up in corporate supply.

- Tsys have moved higher in early Asia-Pacific dealing with the white to red

Eurodollar contracts 2 to 4.5 ticks higher than settlement. USDJPY has moved

below 105.00, HR McMaster has stepped down from his role as chief of the

National Security Council & China has announced retaliatory tariffs on the US.

- T-notes last 120-25, US 10-Year yield last 2.824%.