Knee-jerk sell-off in Tsys w/Q1 GDP....>

US TSY FLOWS: Knee-jerk sell-off in Tsys w/Q1 GDP much better than expected at

+3.2 -- BUT little deceptive w/Inventories adding .65, everything was a touch

better: Real domestic demand +1.4, Consumer spending +1.2, Core PCE lower 1.3. 

- Post data flow had prop and fast$ buying the dip. Bank and real$ buying

intermediates to long end as the long end blew past late overnight highs.

- May Tsy options expired, generating some cross-current flow. Salient trade in

short end was massive -100k FFN sale at 97.635 (+0.035), knocked out bid as it

traded down to 97.62. The $500B notional ($5M for 1 contract) trade far and away

lead volume on the day (299k in late trade) as it blew past open interest of

225k coming into the session.

- On tap for Monday: March personal income; current dollar Personal Consumption

Exps', total and core PCE indexes; Dallas Fed manufacturing index for April; 13-

and 26W bill auctions. FOMC begins 2 day FOMC on Tuesday

- The 2-Yr yield is down 4.6bps at 2.2861%, 5-Yr is down 3.7bps at 2.2932%,

10-Yr is down 2.9bps at 2.5036%, and 30-Yr is down 1.6bps at 2.9257%.