Generally quiet start to the post......>

US TSY FLOWS: Generally quiet start to the post Memorial Day holiday week,

belying heavy volumes across the curve. Rate futures extended session lows as

equities climb higher (ESM0 +66.0) in early trade, Tsys holding to a narrow

channel for much of the session.

- Massive volumes a little deceiving, TYM >3.3M after the bell mostly due to

Jun/Sep roll ahead Fri's first notice. Otherwise, more normal volumes driven by

risk-on selling. Yld curves bear steepening, 2s/10s >51.0. 

- Swap spds running tighter across the curve, moderate unwind of last week's

expansion to session lows. Rate locks vs. incoming swappable supply helping keep

spds in range.

- Appears to be some risk-off (risk-on unwinds) after the bell on following

US/China headlines: "U.S. MULLS SANCTIONS ON CHINESE OFFICIALS, FIRMS OVER HONG

KONG" Bbg

- The 2-Yr yield is up 0.8bps at 0.1758%, 5-Yr is up 1.3bps at 0.3462%, 10-Yr is

up 3.3bps at 0.6916%, and 30-Yr is up 5.9bps at 1.4293%.