Futures pressed late, volume spike.....>

US TSY FLOWS: Futures pressed late, volume spike (TYM climbed to 1.375M from

appr 1M in minutes after close) on month end dislocations: Tsys extended session

lows late even as equities held lows (hear $40B sell imbalance), while WTI

gapped to 19.22 briefly. Larger than expected Boeing 7pt jumbo debt issuance

over estimates at $25B helped trigger selling; some desks citing technicals on

another press to downside overnight. Unsurprisingly, yld curves bear steepen. 

- Tsys extended highs prior to PMI data have scaled back slightly even after the

worse than expected 35.4 number vs. 38.0 est (47.8 previous).

- Lead quarterly Jun Eurodollar futures saw decent vol today, first rallying on

the back of this morning's 3M LIBOR drop (-0.1305 to 0.5561%, -0.3310/wk). EDM0

inexplicably reversed course w/ initial speculation over precipitous 3M LIBOR

drop is overdone w/ futures anticipating a rebound. Key to move is in FRB Main

St lending program details where program loans will be based on LIBOR instead of

SOFR.

- The 2-Yr yield is down 1.2bps at 0.1897%, 5-Yr is down 1.3bps at 0.3545%,

10-Yr is up 0.9bps at 0.6361%, and 30-Yr is up 2.7bps at 1.2773%.