Rates trade softer for second..........>

US TSY FLOWS: Rates trade softer for second consecutive session, little to no

react to lower than expected home sales data, another generally quiet session

ahead Wed's FOMC minutes for Mar 30/Apr 1 meeting. Muted overall volume (TYM <1M

if you take away roll-related volume).

- Tsy yld curves mostly flatter again, 3M10Y off inversion but still on low

single digits (+0.894 at 4.906, L:2.711/H:6.229). CBoE vol index (VIX) cratered

(-1.33, 14.98); equities near highs in late trade (ESM9 +22.0).

- Session flow includes ongoing deal-tied hedging, decent Eurodlr spd volume in

first half (appr +50,000 EDZ9/EDH0 -0.140), several Block sales in Jun 2Y

futures kept front end anchored. Tsys extended session lows following UK

headlines PM May poised to offer MPs a vote on holding a second referendum,

conditional on the bill passing the first stage.

- On tap for Wednesday: MBA Mortgage Applications; Q4 QCEW employment; crude oil

stocks ex. SPR w/w; April 30/May 1 FOMC minutes.

- The 2-Yr yield is up 3.7bps at 2.2579%, 5-Yr is up 2.3bps at 2.228%, 10-Yr is

up 1.2bps at 2.4281%, and 30-Yr is up 0.7bps at 2.8439%.