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Rates weaker, near lows after the......>

US TSY FLOWS
US TSY FLOWS: Rates weaker, near lows after the bell -- curves bear-steepening
as new month/quarter kicks off with strong risk-on support for global risk
assets after positive China data and US trade noise. Decent futures volume
(TYM>420k), yld curves mostly steeper (3M10Y +10.249, 11.128); US$ index softer
but off lows (DXY -.034, 97.250); equities near earlier highs (SPX +32.0,
2869.75).
- Quiet second half, sources reported real$ buying lows earlier, dealer and bank
portfolio selling intermediate to long end. Chatter of negative convexity
hedging on the way down, swap-tied selling in 10s and 30s. Deal-tied selling in
the mix as well.
- 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 up 6.3bps at 2.3225%, 5-Yr is up 7.5bps at 2.3081%, 10-Yr is
up 8.9bps at 2.4938%, and 30-Yr is up 7.8bps at 2.8924%.

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