Well off first half highs, futures.....>

US TSY FLOWS: Well off first half highs, futures still trading firmer after the

bell amid moderate overall volumes (TYU>820k). Driver for late session chop

debatable: Trump press conf scheduled for 1700ET to address action on China; or

Fed Brainard speech where she mentions: a "wave of insolvencies is possible"

while "fiscal support will remain vital."

- Tsys surged higher post data (CPI increased by a stronger-than-expected 0.6%

(0.56536% unrounded) following a 0.1% drop in May, primarily driven by surging

energy prices (+5.1%)). Concerted risk-off ensued, sources reported carry-over

swap-tied selling in short end, prop acct buying intermediates to long end. 

- Rates were well bid but off midmorning highs into midday while equities had

clawed back to session highs (ESU0 +11.5) after first half's concreted risk-off

move. Virus headlines appear mixed on net for day (AZ still bad but FL earlier

more mixed). Yld curves mildly flatter. Sources report carry-over swap-tied

selling in short end, prop acct buying intermediates to long end.

- The 2-Yr yield is up 0.4bps at 0.155%, 5-Yr is down 0.2bps at 0.2833%, 10-Yr

is down 0.2bps at 0.6168%, and 30-Yr is down 0.3bps at 1.3045%.