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Mildly choppy day for rates. Early.....>

US TSY FLOWS
US TSY FLOWS: Mildly choppy day for rates. Early Tsy bid after ECB left rates
steady, continued to extend session highs into noon hour then gradually pared
move into the close -- Mexico tariff headline sensitivity apparent.
- Risk-off unwinding on dueling Mexico tariff headlines delivering some real-vol
ahead Fri's May employ data. Equities surged to new session highs (ESM9 +19.25)
on headline suggesting possible delay in imposed tariff increase.
- Moderate two-way flow on net, volume well off week's pace, large curve blocks
(TYU/UXYU flattener; FVU/WNU flattener; TUU/UXYU steepener) light deal-tied
hedging, heavy option volume amid ongoing upside (re: rate cut) hedging while
some put buying emerged after Fed Kaplan struck more of a wait and see tone re:
easing.
- On tap for Friday: May nonfarm and private payrolls, unemployment rate and avg
hourly earnings; Apr wholesale inventories and sales; Q2 StL and NY Fed Real GDP
Nowcasts; April consumer credit. Mean est for May NFP holding around+180k to
+185k. The 2-Yr yield is up 2.4bps at 1.8807%, 5-Yr is up 0.8bps at 1.8844%,
10-Yr is down 1.1bps at 2.1243%, and 30-Yr is down 2.4bps at 2.6223%.

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