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

US TSY FLOWS: Rates trading weaker across the board, paring back moderate long

end rally in lead up to UK PM May confidence vote. Rates drifted back lower

after May won confidence vote by narrow margin (325 vs. 306), US$/GBP see-sawed

higher.

- 30Y bond bounced off lows around midmorning, drifted around top end of range

for much of session, move corresponded w/drop in US$/Yen and US$/GBP. Volumes

very light however -- TYH less than 1M by the close.

- On tap for Thursday: Weekly jobless claims (218k); Jan Philadelphia Fed

Manufacturing Index (9.0); Fed Brd of Govs' VC Quarles participates in insurance

industry forum.

- Two-way front to intermediate trade w/better selling partially related to

ongoing/decent corp and supra-sovereign issuance, prop selling long end late.

Rather decent two-way swap flow in 2s-5s, dearth of flow to explain 2.3bp bounce

off inverted low in long end.

- Tsy cash/ylds: 2Y 99-29 (2.547%), 5Y 100-11.25 (2.547%), 10Y 103-12 (2.729%),

30Y 105-24 (3.078%).