Risk-off tone made quiet return in.....>

US TSY FLOWS: Risk-off tone made quiet return in late trade w/Tsy futures

trading higher into the close (yld curves mixed w/3M10Y extending to new 12 year

inverted lows: -14.918); equities pared gains late (ESM9 +2.0); well off lows,

CBoE vol index (VIX) (-0.08 at 17.82).

- Ongoing Jun/Sep futures roll helped elevate overall volumes but action running

their corse ahead Fri's first notice. Two-way flow on net, better buying from

fast- and real$ in short to intermediates first half, block buys TYU and WNU.

Prop and fast$ selling later in second half as equities trimmed gains. Desks not

reporting much in way of month-end extensions yet. Deal-tied flow muted though

$1.25B BoNY Mellon 2NC1 generated some hedging.

- On tap for Friday: April personal income and current dollar PCE data;

ISM-Milwaukee Mfg Index; MNI Chicago PMI report for May; Michigan sentiment

index; St. Louis and NY Fed Real GDP Nowcasts.

- The 2-Yr yield is down 4.6bps at 2.0629%, 5-Yr is down 4.8bps at 2.0215%,

10-Yr is down 4.4bps at 2.2168%, and 30-Yr is down 4.6bps at 2.6466%.