Rates have see-sawed steadily lower....>

US TSY FLOWS: Rates have see-sawed steadily lower since the open, at/near lows

after the bell, curves bear steepening amid modest futures volume, TYM just over

1M. Equities near lows after large sell program near midday (SPX -5.5 at

2889.0); US$ index near highs (DXY +.220, 97.166).

- Firmer PPI and claims below 200k for the first time in 50 years helped kick

off rate sales, no love for equities after couple early sell recommendations, RX

and insurance stocks weighed as did rebound in US$. Over 1,100 name sell program

saw SPX futures gap lower/make new session lows ahead noon. 

- Long end came under renewed pressure after 30Y bond auction (912810SF6)

tailed, awarded 2.930% rate (3.014% previous) vs. 2.920% WI. Scant deal-tied

flow on day, early swap-tied selling 2s, buying 10s, two-way curve flow.

- On tap for Friday: Import/export price index levels for March; April Michigan

sentiment index; GDP Nowcasts from the NY and St Louis Fed.

- The 2-Yr yield is up 3.3bps at 2.354%, 5-Yr is up 4.4bps at 2.3158%, 10-Yr is

up 3.9bps at 2.5042%, and 30-Yr is up 4.5bps at 2.9375%.