Mildly higher with the exception of....>

US TSY FLOWS: Mildly higher with the exception of weaker 2s, Tsys well off

higher levels from most of the session, light volume (TYH<970k). US$ index

climbed back to Jan 25 levels (DXY +.317, 96.384) when US Gov re-opened when

index fell from 96.528 to 95.738. Equities steady/near mid-range (SPX 2730.0).

- FI bid evaporated after 10Y auction -- US Tsy $27B 10Y note auction

(9128286B1) awarded 2.689% rate (2.728% in January; 3.109% avg) vs. 2.690% WI.

- Session flow included large short end selling Fed fund futures (-50k FFG, -35k

FFJ both at 97.60); Block buying appr 20k FFH (114-17 to 114-19), light two-way

curve flow, decent late selling front end Eurodollar futures. Light deal-tied

selling in 5s-10s.

- On tap for Thu: Weekly claims (221k est); consumer credit for December

($16.5B); $19B 30Y bond auction (912810SF6). Dal Fed Pres Kaplan, Fed Brd Gov VC

Clarida and StL Fed Pres Bullard speak at separate events.

- Tsy cash/ylds: 2Y 99-30.75 (2.518%), 5Y 100-07 (2.588%), 10Y 103-21.5

(2.693%), 30Y 106-23.5 (3.029%).