CORRECTS YLDS, Early, tentative........>

US TSY FLOWS: CORRECTS YLDS, Early, tentative risk-on trade trade gave way to

risk-parity like support for equities as well as Tsys, latter off lows on modest

volume even as stocks surged. 

- Equities gained as financials outperformed: Blackrock, MS and GS all beat

earnings est); midday support in Tsys receded briefly as equities continued to

power higher: SPX +55.0 at 2804.0, just another 85.0 to go to get back to last

Wednesday's pre-meltdown level (and appr 75.0 off last Thursday's late lows).

- Curves extend flattening with long end outperforming. FI implied vol grinding

lower on the range (better call sales, put buys on net); VIX in retreat as well

-2.96, 18.34 vs. 20.56H. 

- Trade volume fairly muted, however, modest data today -- accts likely

sidelined ahead Wed' Sep FOMC minutes release in afternoon. Also waiting on Tsy

dept release of FX policy report on major trade partners w/US. Decent deal-tied

flow on dat, rate paying intermediates to long end.

- Tsy cash/ylds: 2Y 99-25 (2.861%), 5Y 99-11.25 (3.015%), 10Y 97-20.5 (3.154%),

30Y 93-26.5 (3.327%).