*** CORRECTS ATTRIBUTION: Fri's......>

US TSY FUTURES:  *** CORRECTS ATTRIBUTION: Fri's modest rate rally not being

kind to yld curves, currently making new 10+ year lows, 5s30s below 26.5 at the

moment (after breaking long-term support around 35.0 back on April 12). Latest:

* 2s10s -1.018, 41.772 (43.155H/41.090L);

* 2s30s -1.521, 55.867 (57.962H/55.867L);

* 5s30s -1.231, 26.458 (28.817H/26.218L);

Weighing in, TD Securities strategists posit a "demand-supply mismatch for

longer dated Treasuries is consistent with the recent flattening of the curve

and the increase in stripping activity." While "much of the flattening of the

curve since last year was led by an increase in Fed hikes pricing" TD said

flattening is likely to accelerate amid increased Japanese insurance portfolio

demand if US$/Yen recedes to 104-105 lvl vs. 109.18 currently. TD expects

continued flattening in 5s and 10s vs. 30s, while 2s10s "shouldn't invert"

unless a "faster pace of hikes" requiring "confidence about a higher r*" is

priced in. TD doesn't "sense any pressing need for the Fed to hike faster than

what is priced in."