Rates trade softer, low end narrow.....>

US TSY FLOWS: Rates trade softer, low end narrow overnight range, decent futures

volume (TYM>450k). Tsy yld curves mostly flatter, 3M10Y still inverted at -1.803

(L: -5.587/H: -1.272); VIX weaker/near lows (-0.34, 16.10); equities mildly

firmer/near highs (ESM9 +8.0, 2863.0).

- Overnight flow light/two-way in short end early, prop and swap acct selling

intermediates, leveraged acct buying out the curve, steepeners in 5s vs. 10s and

30s, sellers in TIPS, light deal tied sales.

- On tap for Thursday: On tap for Thursday: Weekly jobless claims; Apr housing

starts and building permits; May NY Fed Business Leaders Index and Philadelphia

Fed Mfg Index.

- The 2-Yr yield is up 1.8bps at 2.1779%, 5-Yr is up 1.5bps at 2.163%, 10-Yr is

up 0.7bps at 2.3803%, and 30-Yr is unchanged at 2.8199%.