Early hopes for Tue's trade volumes....>

US TSY FLOWS: Early hopes for Tue's trade volumes were dashed late: TYM was appr

340k around the NY open, only climbed over 850k after the bell even as Tsy

futures recede from second half highs. Equities reversed course late, SPs +33.0

at 2858.0 after nearly trading 2890.0 ahead midday.

- After a brief dip after session's only NY Fed buy op (Tsy 0-2.5Y, $13.000

accepted, $43.560B submitted), futures are back to quietly extending session

highs last couple minutes as equity bid starts to recede (ESM0 +57.0).

- Multiple Fed speakers that struck a cautionary stance ("CLARIDA: WE'RE IN A

RECESSION", ATLANTA FED BOSTIC: V-SHAPE RECOVERY WILL BE DIFFICULT, STL FED

BULLARD: MARKETS OPTIMISTIC FED WILL KEEP INFLATION ON TRACK) did little to

influence market levels on day.

- Another $18.45B corporate debt issuance generated two-way hedging flow.

- Two-way option flow included decent ratio put spds (+50k EDM 93/95 2x1 put

spds cab).

- The 2-Yr yield is up 0.4bps at 0.1862%, 5-Yr is up 0.8bps at 0.3718%, 10-Yr is

up 2.7bps at 0.6603%, and 30-Yr is up 5.4bps at 1.3308%.