Quiet end to week -- Tsys well bid.....>

US TSY FLOWS: Quiet end to week -- Tsys well bid across the curve ahead next

weeks FOMC, BoE and BoJ policy anncs', 5s30s extending 13-month steepening move

amid decent/heavy buying in 5s on day. 

- Receding sharply after tapping overnight high on the open -- US$ index

drifting near lows (DXY -.202, 96.583); equities firm (SPX +14.25, 3827.5); VIX

weak, -.55 at 12.95.

- Little react to IP/CapU data, steady Tsy bid followed Bund lead early.

Otherwise many participants were plying the sidelines, little conviction ahead

of next week's policy trio.

- Aside from better buying in 5s, concerted long end support from real$ and

carry over insurance portfolios in 10s and 30s. Little deal-tied flow to speak

of (last 2 sessions) except for late comer JP Morgan w/stealth $2.5B 4NC3

issuance. No Tsy auctions next week save 13- and 26W bills on Monday.

- Better selling soon to expire EDH9 futures since 3M LIBOR set (+0.0106 to

2.6252%, +0.0286/wk). Tsy cash/ylds: 2Y 100-03.62 (2.460%), 5Y 99-24.25

(2.425%), 10Y 100-00.5 (2.621%), 30Y 99-10 (3.034%).