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Late bounce in long end, curves.....>

US TSYS SUMMARY: Late bounce in long end, curves re-flatten on thin volume.
Rates had rotated in lower range after midday Fri, well off early session highs
following +164k jobs miss (vs. +185k est), AHE little soft at 0.1% (vs. 0.2%
est). Rates held narrow/higher range post data, showing little reaction to data,
early flow 2-way, implied vols hammered on the range trade.
- Rates slipped lower as US% gained strength midmorning, DXY climbed to 92.900,
apparent trigger to better sellers in 10s-30s, curve flattener unwinds by fast$
in 2s and 5s vs. 30s. DXY gradually pared gains through midday while strong
gains in equities took over (emini +25.0, 2656.75). Exhibiting decent positive
correlation to equities this week, West Texas crude also surged (WTI +1.33,
69.76 vs. 69.97H).
- Strong buying in Jun 10Y futures around 119-28.5 to -29.5 post data, reversed
by midmorning w/fast- and real$ selling down to 119-18. NY Fed Pres Dudley
interview on Bbg sees "healthy" employ gains for Apr, expects investment
acceleration to be modest, see LIBOR end in 2021.
- Tsy ylds: 2Y 2.497%, 3Y 2.628%, 5Y 2.780%, 7Y 2.895%, 10Y 2.944%, 30Y 3.114%

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