*** Rates held mixed into the.......>

US TSYS SUMMARY: *** Rates held mixed into the close, curves hammered to new 10+

year lows w/long end near session highs (2s10s -3.137, 53.245; 5s30s -4.286,

57.748). Equities weak/off lows (emini -11.0, 2658.0), gold soft (XAU -1.06,

1254.59).

- Tsys opened weaker, held narrow range into BOE and ECB policy annc's, little

knock-on effect or reaction to data flurry including wkly claims (-11K to 225K).

Real vol immediately started to evaporate on narrow range trade into ECB Draghi

presser (again, little react).

- US$ reversed early strength into midday, spurred short covering, outright

buying in Tsys, while sources reported pension fund quarter-end rebalancing, MOC

sell imbalance orders building.

- Flow included real$ buying 5s, 7s and 10s, flatteners in 5s30s. Real$ and

insurance portfolio buying long end late, more curve flatteners via 2s and 5s

vs. 30s. 

- Swap spds narrowed on light flow: small 2s5s flattener after 3s5s steepener,

prop and bank rate receiving/payer unwinds in 2s-10s in second half.