Long end support evaporated early in the....>

US TSYS: Long end support evaporated early in the latter half of Wednesday's

session as futures made new session lows late on, but bounced slightly even as

USDJPY had a brief look above its 200DMA (100.21).

- The belly of the curve underperformed the wings after Tsys opened lower on the

back of weaker Bunds as a result of comments from various ECB members suggesting

that next week's decision could indeed be "live" re: discussing the central

bank's exit from QE later in the year.

- Flow included real-money buyers of 5s & 10s, with real-money bids stacked

below market in 10s. Fast-money accounts were active in buying 30s, mostly

covering shorts.

- Eurodollar futures were weaker across the strip & went out near the lows.

- T-Notes last at 119.10, US 10-Year yields closed at 2.972%.