Rates trading weaker across the........>

US TSY FLOWS: Rates trading weaker across the board, at/near late overnight lows

on moderate volume (TYH appr 355k), yld curves continue to inch steeper (5s30s

+.780, 55.070). US$ index firmer w/GBP after UK PM May's Brexit defeat in

parliament (record 230 vote loss), no confidence vote today at 1400ET.

- On tap for Wednesday: imports (-1.3%) and exports price index for December;

Jan NY Fed Business Leaders Index; Fed Beige book. Fed speak w/MN Fed Pres

Kashkari later in evening

- Overnight flow included two-way in short end w/swap-tied selling 2s, fast$ and

bank portfolio selling 5s, real$ bought intermediates, bank and real$ selling

long end more recently. Some profit taking in curve positions after this week's

steepening. Deal-tied selling in 5s and 10s.

- Tsy cash/ylds: 2Y 99-29 (2.549%), 5Y 100-10.75 (2.551%), 10Y 103-10 (2.736%),

30Y 105-08.5 (3.101%).