Relative quiet week opener, awaiting...>

US TSY FLOWS: Relative quiet week opener, awaiting Fed chair Powell Wednesday

morning. Inside range day for Tsys -- weaker but off late lows as rate lock

hedges unwound.

-  Recent blip higher/off lows likely tied to rate-lock unwinds from PayPal and

Walt Disney that between the 2 issued $15B ($4B and $11B resp) in debt across

the curve.

- Small stop through as US Tsy $42B 3Y Note auction (912828ZP8) awarded 0.230%

(0.348% last month) vs. 0.232% WI, bid/cover 2.54 vs. 2.27 previous.

- Still a long way to go before Jun futures expire in mid-late June (10s, 30s

and Ultras on 6/19; 2s & 5s 6/30). Nevertheless, starting to see pick-up in

Jun/Sep futures rolling, first notice on May 29. 

-  Note, support in 2021 Fed funds futures out to Dec'21 mostly/mildly weaker

but holding above 100.00.

- The 2-Yr yield is up 2.2bps at 0.1787%, 5-Yr is up 2.2bps at 0.3559%, 10-Yr is

up 3.5bps at 0.7179%, and 30-Yr is up 4.9bps at 1.4316%.