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Off early overnight highs, rates.......>

US TSY FLOWS
US TSY FLOWS: Off early overnight highs, rates trading mildly mixed on decent
volume (TYU>400k), Tsy yld curves little steeper (3M10Y +1.816, -6.002).
Equities little weaker (ESU9 -2.5, 2982.5), Gold scales back portion of Wed's
rally but still over 1420.0.
- Limited data w/weekly claims and leading indicators; $14B 10Y TIPS auction;
flurry of Fed speakers before start of blackout Saturday; equity earnings
continue. Headline watching: global trade, debt ceiling and potential funding
issues. Note 3M FRA/OIS climbs to new 6M high of 26.70 this morning.
- Overnight flow includes fast$ acct buying in the wings, two-way in the
intermediates, swap-tied buying in 10s.
- The 2-Yr yield is up 0.8bps at 1.8195%, 5-Yr is up 0.3bps at 1.8162%, 10-Yr is
up 0.7bps at 2.052%, and 30-Yr is up 1.5bps at 2.572%.

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