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%