Relative quiet end to hectic FOMC......>

US TSY FLOWS: Relative quiet end to hectic FOMC week, rates largely unwinding

rate rally since annc while short end continues to price in small chance of 50bp

cut at next policy meeting at end of July. 

- Moderate volume (TYU appr 1.45M) 10YY back up to 2.063% after slipping to

1.9719% (Nov'16 levels) Thu. Fed speakers back: Kashkari wanted 50bp cut and

aggressive Policy, Fed Brainard: downside risks call for lower rates.

- Not exactly risk-off, safe havens still trade strong, Gold made new 5 year

high of 1412.08, crude still well bid amid ongoing US/Iran tensions (despite

Trump calling off strike in retaliation for Iran downing unmanned drone late

Thu).

- Mixed flow w/better sellers across the curve, particularly long end, swap spds

directionally tighter, spd curve flattener unwinds 2s and 5s vs. 10s and 30s.

- Eurodollar option volume remains heavy but off Thu's very heavy pace.

- The 2-Yr yield is down 0.2bps at 1.776%, 5-Yr is up 2.1bps at 1.8021%, 10-Yr

is up 3.4bps at 2.0626%, and 30-Yr is up 5bps at 2.5899%.