Ignoring ongoing violent protests......>

US TSY FLOWS: Ignoring ongoing violent protests across the US and abroad, risk

tone held firm with rates trading weaker all session, equities firmer/upper half

of the range (ESM0 +5.0) in late trade.

- Long end made several attempts to pare losses on day while yld curves

continued to forge steeper (5s30s nearing 3 year highs tapped mid-March).

- Swap spds ratchet tighter, session lows by the closing bell, short end leading

move w/5s and 30s not for behind. Incoming supply and tighter FRA/OIS basis

weighing. 5Y bucked move into the open amid some rate paying and receivers out

the curve ahead the open.

- Financial names securing funding helped push high grade debt issuance over

$17.5B on day (>$35B/wk).

- Overall volumes remained below average, however, with many participants close

to the sidelines ahead ADP private employ data early Wed (-9.000M est); NFP Fri

(-8.000M est) while May unemployment rate estimate nears 20%.

- The 2-Yr yield is up 1bps at 0.1663%, 5-Yr is up 1.4bps at 0.3195%, 10-Yr is

up 2.1bps at 0.6803%, and 30-Yr is up 2.6bps at 1.4766%.