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).

- Moderate futures volume (TYM>1.2M); US$ index mildly higher after second half

decline on UK Brexit headlines (DXY +.127, 97.359); equities mildly higher (SPX

+1.5, 2872.0).

- Two-way flow, position squaring/profit taking after Mon's move, deal-tied flow

in 5s-10s, prop and option-tied selling intermediates earlier, real$ buying long

end.

- On tap for Wednesday: March ADP private payrolls; March Markit Services Index;

March ISM Non-manufacturing Index; April help-wanted online ratio.

- The 2-Yr yield is down 3bps at 2.3024%, 5-Yr is down 3.7bps at 2.2848%, 10-Yr

is down 2.7bps at 2.4741%, and 30-Yr is down 1bps at 2.88%.