Quiet session despite early chop,...>

US TSYS SUMMARY: Quiet session despite early chop, couple notable rallies in

long end futures while 10Y yld held below 3.0% to 2.968% by the bell. Early

focus turned from BoE steady rate annc and lower inflation profile to wkly

claims (211k) and April CPI +0.2% (unrounded +0.221%) vs +0.3% exp. Tsys made

new session highs on the latter, choppy two-way flow on the follow. 

- Early flow included bank portfolio and real$ selling out the curve, fast$

2-way in short end, some profit taking in curve flatteners as well. Tsys pared

gains after the London close, holding narrow range until revisiting session

highs following strong 30Y auction (stopped .08 through to 3.130%), curves fall

to session lows (still off mid-April 10+ year lows).

- Jun/Sep futures rolling underway ahead May 31 first notice dat, FVM/FVU lead

w/near 50k on day.

- US$ index ratcheted lower (DXY -.380, 92.660; US$/Yen 109.373); equities

little firmer (emini +23.75, 2179.75) while West Texas crude higher (WTI +0.29,

71.43, 71.89H); gold stronger (XAU +8.05, 1320.76).

- Tsy ylds: 2Y 2.534%, 3Y 2.688%, 5Y 2.833%, 7Y 2.940%, 10Y 2.968%, 30Y 3.119%