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US Treasurys are surging following an ABC News report suggesting that Michael Flynn will testify that President Donald Trump told him to contact Russians.

No other media outlet has been able to confirm the report.

Flynn, the former national security adviser, was charged Friday with one count of making false statements to federal investigators.

He pleaded guilty to the charge and is cooperating with the investigation.



Heavy buying across the Treasury complex has yields sharply lower - especially at the long end of the curve. Here's a look at the scoreboard as of 11:55 a.m. ET:

2-year -3.2 basis points at 1.750%

-3.2 basis points at 1.750% 3 - year -3.8 bps at 1.854%

- -3.8 bps at 1.854% 5-year -5.8 bps @ 2.079%

-5.8 bps @ 2.079% 7-year -7.6 bps @ 2.232%

-7.6 bps @ 2.232% 10-year -7.7 bps @ 2.333%

-7.7 bps @ 2.333% 30-year -9 bps @ 2.737%.

Friday's buying has longer-dated yields nearing the lower bound of the range that has been in place since the beginning of October. The benchmark 10-year yield has spent much of the past two months locked between 2.30% and 2.40%.

However, yields are still sharply higher from their early-September levels as traders dumped their holdings in anticipation tax cuts would pass through Congress. The benchmark 10-year yield was threatening a break below 2% before the selloff.

Aggressive flattening along the yield curve has the 2-10-year spread tighter by 4.5 bps near 58 bps. It's near its flattest level since 2007.

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