Broadly weaker after the bell on.......>

US TSY FLOWS: Broadly weaker after the bell on light volumes (TYM<770k; USM

<185k), Many sidelined ahead Wed's FOMC annc; risk-off unwinds with equities

near late session highs (ESM0 +46.0); yld curves bear steepening.

- Rates extended lows last midmorning, followed by a brief modest bounce in the

long end. Several factors at play early Monday morning: rush of corporate

issuance in addition to multiple Tsy bill and note auctions (13- and 26W Bills,

2- and 5Y Notes) with rate locks and pre-auction short sets weighing at a time

where market participation is thin/light volumes (TYM less that 400k). Sidebar:

hedging for a failed 2Y auction, some 40,000 Jun 2Y low delta puts bought prior

to the 2Y note auction.

- Spds running tighter across the curve as corporate debt issuers came off the

sidelines Monday as markets traded with a modest risk-on (risk-off unwind) tone,

implied vol weaker with rates drifting near session lows, equities near highs.

Two-way deal-tied flow on the day. 

- The 2-Yr yield is down 0.4bps at 0.2202%, 5-Yr is up 2.9bps at 0.4021%, 10-Yr

is up 5.8bps at 0.6589%, and 30-Yr is up 8.5bps at 1.2546%.