Rates drifting around top end of.......>

US TSY FLOWS: Rates drifting around top end of narrow range on very light volume

trade (TYM<925k) by the bell. Tsys tracked CAD bonds higher earlier after weaker

than expected BoC Q1 outlook survey tied to energy, trade and housing, 3 ongoing

issues. Equities mildly weaker (SPX -2.5 at 2910.0); US$ index mildly lower (DXY

-.015, 96.957).

- Quiet start to shortened pre-holiday week, limited data doesn't pick up until

Thu's session, mkts (including cash) closes Fri.

- First half flow included fast$ and prop acct buying 5s, real$ and bank

portfolio buying long end, moderate Eurodollar option flow, unwinding near

expiry Jul put spds and Green Dec 73/83 strike roll.

- On tap for Tuesday: April NY Fed Business Leaders Index; Redbook retail sales;

March industrial production and capacity utilization; NAHB home builder index

for April. Fed Blackout kicks off April 20 through May 2.

- The 2-Yr yield is down 0.2bps at 2.3895%, 5-Yr is down 1.3bps at 2.3668%,

10-Yr is down 1.6bps at 2.5489%, and 30-Yr is down 1.6bps at 2.9611%.