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Heavy carry-over selling after Tsy.....>

US TSY FLOWS
US TSY FLOWS: Heavy carry-over selling after Tsy ylds climbed to multi-year
levels Wed, TYZ volume already over 1.1M futures, 10YY currently +.0190 at
3.2003% vs. 3.2305% high revisits mid 2011 levels. Curves adding to Wed's sharp
steepening.
- Little rebound off overnight lows as US$/Yen slips lower (-.42 at 114.11 vs.
114.55H); US$ index firmer, +.117 at 95.879.
- Overnight flow includes fast$, prop and macro fund selling 5s, two-way in 10s
from funds vs. bank portfolio, 
bank and insurance portfolio selling long end earlier while prop and real$
bought recent dip, real$ rate paying in 5s-10s. Ongoing flattener unwinds.
- Massive Tsy option flow, TYX 117 put volume >150k, TYX 117.5 puts >125k
- Tsy cash/ylds: 2Y 99-24.25 (2.872%), 5Y 99-06.5 (3.047%), 10Y 97-09.5
(3.195%), 30Y 93-09 (3.357%).

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