Rates rotated around steady after......>

US TSY FLOWS: Rates rotated around steady after the bell, near middle of range

on decent volume (TYM>1.3M -- near half of that by midmorning) amid two-way

positioning ahead Thu's heavy data drop/shortened session ahead Fri close. 

- Early risk-on, Tsys yields tracked China and Bund gilts higher, latter

underperforming Tsys, 10YY back to mid-March levels. Gold continued decline (5

days running) partially tied to persistent China green-shoots chatter (MORGAN

STANLEY RAISES 2019 CHINA GDP FORECAST BY 2 PPT TO 6.5%; China 10Y yld through

200DMA; China O/N repo 3%/4Y high).

- Tsy futures Blocked: large 2s10s flattener (-20,925 TUM 106-07.38 vs. +10,844

TYM 122-25); large short end buy/block at midday (+16,564 TUM 106-08.5). Decent

deal-tied hedging, dealer issuance active.

- On tap for Thursday: February business inventories; weekly claims; March

retail sales; Apr Philadelphia Fed Mfg Index; April Markit Mfg and Services

Indexes; February business inventories; March leading indicators.

- The 2-Yr yield is down 1.4bps at 2.3981%, 5-Yr is down 0.8bps at 2.3975%,

10-Yr is unchanged at 2.5904%, and 30-Yr is down 0.2bps at 2.9895%.