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Follow through decline in Tsy ylds.....>

US TSY FLOWS
US TSY FLOWS: Follow through decline in Tsy ylds (10YY 2.538%), futures drifting
around top end overnight range, trade volume continues to improve (TYM appr 400k
vs. 530k all-day Monday). Yld curves mostly steeper, 3M10Y appr 2bp flatter
- Equities not enjoying positive earnings feedback so far, Tsys ylds mirror
moves in German Bunds this morning.
- Equities near steady after surging to 6M highs Tue (SPX 2939.75); USD index
little firmer (DXY +.054, 97.690); West Texas paring early week gains (WTI
-0.32, 65.98).
- Overnight flow includes fast$ and prop acct buying short end, better selling
in 10s from leveraged$ earlier, short end paying, some deal-tied selling while
corp issuance running behind et's for week ($15-20B), pre-auction short sets
ahead $41B 5Y note auction (9128286R6).
- On tap for Wednesday: MBA Mortgage Applications for April; crude oil stocks
ex. SPR w/w. US TSY $20B 2Y FRN and $41B 5Y note auctions. 
- The 2-Yr yield is down 2.5bps at 2.3618%, 5-Yr is down 2.7bps at 2.3593%,
10-Yr is down 2bps at 2.5686%, and 30-Yr is down 1bps at 2.9824%.

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