Rates drifting at late session lows....>

US TSY FLOWS: Rates drifting at late session lows after the bell amid strong

risk-on tone all day. Move kicked off after better than expected China financial

data (exports surged 14.2% in March) spurred bid for global equities, Bunds lead

EGBs lower (10Y Bund yld highest since Mar 21). Equities off session highs (SPX

+17.25 at 2909.0); US$ index off lows to near middle session range (DXY -.191,

96.986).

- Better fast- and real$ selling front end, 5s-10s earlier, dearth of corporate,

swap-tied flows; option acct buying 10s earlier on heavy screen trade,

steepeners/front-end flattener unwinds as 3M10Y steepens to best level in three

weeks.

- On tap for Monday: April Empire Manufacturing Index; February net TICS flows;

13- and 26W bill auctions. Otherwise quiet ahead next week's shortened

pre-Easter holiday weekend; Fed Blackout kicks off April 20 through May 2.

- The 2-Yr yield is up 3.9bps at 2.3934%, 5-Yr is up 6.4bps at 2.3751%, 10-Yr is

up 6.1bps at 2.5579%, and 30-Yr is up 4.6bps at 2.9721%.