Rates open mixed, long end under.......>

US TSY FLOWS: Rates open mixed, long end under heavy pressure (30YY 2.289%).

- Tsy 20Y annc bond late Thu, anticipated by dealers as a better/more liquid

alternative than 50- or 100Y bond, will likely be annc'd at the Feb refunding

for auction in May. Immediate result was steeper curves w/better long end

selling, dealer research expressing interest in 10s20s30s flys, 10s20s

steepeners and/or 20s30s flattener.

- Other overnight flow included general squaring ahead long weekend, prop, fast-

and real$ buying shorts to intermediates, deal-tied unwinds, 2s10s steepeners.

- The 2-Yr yield is down 0.9bps at 1.5572%, 5-Yr is down 0bps at 1.6244%, 10-Yr

is up 1.9bps at 1.8267%, and 30-Yr is up 3.3bps at 2.2907%.