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Carry-over risk-off to start new.......>

US TSY FLOWS: Carry-over risk-off to start new week, rates trading firmer after
StL Fed Pres Bullard rate cut "may soon be warranted" comment. Equities react --
knee jerk/algo-driven bid up to 2753.0, only to reverse just as quickly to tap
session lows (currently 2737.75, -14.75). Yld curves holding mostly steeper,
3M10Y extends to new 12 year inverted lows. 
- Heavy volume (TYU>2.3M); 10Y yld -.0449 at 2.0797, Sep 2017 lows. FI implied
vols firmer/off highs; VIX gained rebounded, near top end of range late (+0.5 at
19.56 vs. 19.61H).
- Heavy risk-off/safe haven buying across curve, two-way flow into midday
included ongoing support in intermediates from real$ and bank portfolios, Block
sales TUU, EDH1. Heavy Option flow, Eurodollar screen trade >2.6M late session.
- On tap for Tuesday: Redbook retail sales; May ISM-NY current conditions; Apr
factory new orders.
- The 2-Yr yield is down 8.2bps at 1.8397%, 5-Yr is down 6.7bps at 1.8436%,
10-Yr is down 4.7bps at 2.0779%, and 30-Yr is down 2.5bps at 2.544%.

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