Extended lows last few minutes,......>

US TSY FUTURES: Extended lows last few minutes, modest bounce in the long end.

Several factors at play this morning: rush of corporate issuance in addition to

multiple Tsy bill and note auctions ($48B 26W Bill and $42B 2Y Note) with rate

locks and pre-auction short sets weighing at a time where market participation

is thin/light volumes (TYM less that 400k). Sidebar: hedging for a failed 2Y

auction, some 40,000 Jun 2Y puts bought last 30 minutes. Update:

* 3M10Y  +4.897, 52.265 (L: 44.982 / H: 53.186)

* 2Y10Y  +3.190, 40.412 (L: 37.471 / H: 40.615)

* 2Y30Y  +4.067, 98.168 (L: 94.451 / H: 98.903)

* 5Y30Y  +2.235, 81.691 (L: 79.344 / H: 82.69); Current futures levels:

* Jun 2-Yr futures down 1.375/32 at 110-4.5 (L: 110-04.375 / H: 110-05.625)

* Jun 5-Yr futures down 7/32 at 125-6 (L: 125-05.5 / H: 125-11.5)

* Jun 10-Yr futures down 14.5/32 at 138-21 (L: 138-20.5 / H: 139-01.5)

* Jun 30-Yr futures down 1-09/32 at 180-23 (L: 180-20 / H: 182-03)

* Jun Ultra futures down 2-11/32 at 226-03 (L: 225-26 / H: 228-24)