*** With rates hugging session lows,...>

US TSY FLOWS: *** With rates hugging session lows, at least participants can

view higher equities (ESZ9 +26.5) as adding impetus to apparent risk-on move.

Using term risk-on doesn't seem appropriate given all the political and US/China

trade related headline risk that has shaken markets up since late Wednesday.

- Chatter but NO confirm of foreign real$ and global macro fund selling in the

first half. Better algo-driven selling on headlines and tweets noted by several

desks, in addition to prop, fast- and real$ selling in intermediates, swap-tied

selling in 10s and 30s along with pre-auction short sets ahead the 30Y R/O.

Others reporting steepener unwinds/taking profits from some accts while others

unwind 3M10Y flatteners as spd has steepened some 18.0bps from Monday's low

around -21.5.

- Option flow mixed, two-way with better buyers of wings (OTM puts/calls)

- The 2-Yr yield is up 4.8bps at 1.5141%, 5-Yr is up 6.2bps at 1.4656%, 10-Yr is

up 6.7bps at 1.6508%, and 30-Yr is up 6.8bps at 2.1517%.