Weaker across the curve/off late.......>

US TSY FLOWS: Weaker across the curve/off late session lows on moderate volumes

(Mar/Jun roll tapering off). Yield curves surge steeper -- largest move since

Jan 30 when FOMC left rates on hold. Not much react to day two Fed chair

testimony, Tsy Lighthizer comments on US/China trade.

- Tsy futures hit an air pocket later in second half, extended session lows in

long end, yld curves continue to bear steepen. Flow included stop-outs in the

intermediates after fast$ and props buying in the intermediates, curve steepener

unwinds, modest deal-tied selling, swap-tied selling in fronts to intermediates.

Heavy selling early on back of large Bund sales, month-end related re-balancing.

Sell-off seemed to accelerate around Brexit headline: "*MERKEL: IF U.K. NEEDS

MORE TIME ON BREXIT WE'LL ALLOW THAT" bbg.

- On tap for Thursday: jobless claims (220k est); Q4 GDP (init) (2.1% est);

ISM-Milwaukee Mfg Index; MNI Chicago PMI (58.0 est); Q4 housing vacancies rate.

Multiple Fed speakers on tap with Fed Chair Powell on economic developments and

long term challenges dinner event in NY. Tsy cash/ylds: 2Y 99-31.75 (2.502%), 5Y

99-15.5 (2.484%), 10Y 99-14 (2.688%), 30Y 98-20.5 (3.069%).