Rates trading firmer, modest rebound...>

US TSY FLOWS: Rates trading firmer, modest rebound from Mon's strong risk-on

sell-off. Relative sedate pre-open w/ yld curves mildly steeper for most part

3M10Y scaling back Mon's sharp rebound off 12 year lows, currently -7.248 at

4.515 (+10.249, 11.128 late Mon).

- Decent futures volume (TYM>415k); US$ index firmer/near mid-range (DXY +.159,

97.391); equities inching off lows last four hours, extending highs at the

moment (SPX +3.0, 2873.5).

- Overnight flow includes fast$ and prop acct buying 2s-5s, two-way in the belly

w/bank portfolio selling 10s, two-way swap flow with modestly better paying in

the intermediates.

- On tap for Tuesday: NA-made light vehicle sales for March throughout the

session; February durable goods new orders; Redbook retail sales; March ISM-NY

current conditions.

- The 2-Yr yield is down 3.4bps at 2.2984%, 5-Yr is down 3.8bps at 2.2831%,

10-Yr is down 3.2bps at 2.4688%, and 30-Yr is down 2.1bps at 2.8692%.