Late session real vol delivery. Yld....>

US TSY FLOWS: Late session real vol delivery. Yld curves snapped steeper w/late

as long end scaled back strong gains, but rebounded just as quickly (TYH extends

session high after dip ahead close). Heavy late volume: >260k TYH from

122-12 back up to -16.5 (total volume on day >1.6M) near 100k USH from 146-27 to

146-15 and back to -29. 

- First half, strong bid across the curve no longer risk-off with equities

surged, sources pointed to FANG shares, GE outperformance. Focus turns to Fri's

Jan employ report (estimates inch lower, +167k last).

- Equities strong but off highs (SPX +18.0, 2700.5); US$ index firmer (DXY

+.237, 95.576).

- Flow: aforementioned heavy two-way on late real-vol, option-tied hedging,

modest month end extensions, two-way curve flow. Little in way of deal-tied

flow, rate paying in 2s, receivers in 5s and 10s. Large Eurodlr option blocks

(+107k EDU 71/72 put spds w/+50k more in pit); 25k FVH 114-26.7 said sale. 

- Tsy cash/ylds: 2Y 100-02.62 (2.456%), 5Y 100-10 (2.432%), 10Y 104-08.5

(2.626%), 30Y 106-13 (2.996%).