*** Cash Tsys see two-way flows by.....>

US TSY FLOWS: *** Cash Tsys see two-way flows by real money and hedge funds amid

initial mild selloff then a further recent second decline lower. But some

foreign central bank buying jumped into front end. Tsys futures had an early

8:30:24 am ET post-jobs 5,000-contract block sales in TYU 10Y futures at

126-056, a sell-thru. 

- Tsys saw mixed flows in 5Y, 10Y notes. Tsys saw initial 5/30Y curve flatteners

then some profit-taking and more unwinds. Cash Tsy 2/10Y, 2/30Y, 2/5Y curves saw

recent steepeners. 

- Some traders had pre-jobs game plan to go into July jobs wanting to sell any

initial upticks; but mkt's post-jobs pathway has been to lower prices. But those

patient sellers could keep a lid on potential market gains later Friday. 

- Traders watched for any corporate rate-lock hedging action in case of heavy US

high-grade corporate bond issuance next week. "Also, you have the 3-year,

10-year and 30-year Treasury auction supply next week," so dealers will try to

push mkt lower to get price concession into those auctions which begin Tues,

said one trader.