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

2.5953%.