*** Rates trading mixed early in....>

US TSYS SUMMARY: *** Rates trading mixed early in second half, curves getting

hammered (but still off last week's 10+ year lows) w/long end rebounding.

Equities weaker (emini -4.5, 2664.5), gold soft (XAU -0.95, 1254.65).

- Tsys opened weaker, held narrow range into BOE and ECB policy annc's, little

knock-on effect or reaction to data flurry including wkly claims (-11K to 225K).

Real vol immediately started to evaporate on narrow range trade into ECB Draghi

presser (again, little react).

- US$ reversed early strength into midday, spurred short covering, outright

buying in Tsys,  while sources reported pension fund quarter-end rebalancing

chatter made the rounds. 

- Most notable: curves pancaking again as short end resists here (2s10s -2.015,

54.367; 2s30s -3.801, 91.056; 5s30s -3.553, 58.487.

- Additional late morning flow included real$ buying 5s, 7s and 10s, flatteners

in 5s30s. On latter, desks keeping close eye on Block screen for large curve

flattener go up given move over last hour.

- Swap spds narrowed on light flow: small 2s5s flattener after 3s5s steepener.