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More of a risk-off unwind than.........>

US TSY FLOWS: More of a risk-off unwind than risk-on by Tuesday's close, though
equities see strong bounce on strong bank performance (ESM9 +47.5), much lower
than than wk ago. Rate cut pricing solidifying as concern over coming recession
spreads (3M10Y leads but still deeply inverted (near Mon's new 12 year lows).
- Little data to trade off of (focus more on Fri's NFP) markets had plenty of
Fed speak to react to ahead Saturday's blackout period. FED CHAIR POWELL: TO ACT
AS APPROPRIATE TO SUSTAIN EXPANSION, "prepared to act" statement saw rates blip
higher before resuming sell-off.
- Pick-up in deal-tied flow, real$ buying vs. MBS, OTR buyers 7's and 10's vs
currents. curve flattener unwinds from fast$ in short end. HEAVY Eurdlr option
volume again, upside call spd buying partially funded by OTM put sale theme.
- On tap for Wed: May ADP private payrolls; May Markit Services Index; May ISM
Non-manufacturing Index; Jun help-wanted online ratio; Fed Beige Book for
upcoming FOMC meeting (June 18-19). The 2-Yr yield is up 3.4bps at 1.8653%, 5-Yr
is up 3.9bps at 1.8747%, 10-Yr is up 4bps at 2.1106%, and 30-Yr is up 6.4bps at

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