Rates continued to grind lower......>

US TSYS SUMMARY: Rates continued to grind lower into the close, prospect of more

rate hikes as economy gains momentum finally catching up with long end; Tsy yld

curves well off early flats; Equities off lows, however, while EUR currency

traded lower after MNI Sources story that ECB considering fresh TLTRO.

- Better selling returns after two-way in midmorning, prop and fast$ selling 5s,

bank and real$ selling out the curve, stops triggered on latest down turn, curve

flattener unwinds in 2s and 5s vs. 10s. No deal-tied flow to speak of.

- Better sellers earlier/immediately after better than expected headline jobs

gain of +250k vs. +190k est -- and NO down revisions. Intermediates took brunt

of selling, curves bear flattening w/5s30s sliding to 38.347 low vs. appr 41.0

at moment. Attention turns to next week's Midterm elections Tuesday, latest FOMC

on Thu (no change exp on latter).

- Heavy options volume, Tsy option accts sold >12k Dec 10Y 117/117.25/117.5 put

strips from 23- to 26/64.

- Tsy cash/ylds: 2Y 99-29.5 (2.912%), 5Y 99-07.75 (3.038%), 10Y 97-05 (3.214%),

30Y 91-18.5 (3.454%).