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Risk-on gained momentum post ISM.......>

US TSY FLOWS
US TSY FLOWS: Risk-on gained momentum post ISM (bouncing off 2 yr lows), Tsys
extend session lows -- curves mostly steeper while 3M10Y continues to move off
12 year lows (3M10Y +8.945, 9.824, 10.002H)
- Decent futures volume w/ TYM already over 1M; US$ index softer but off lows
(DXY -.087, 97.197); equities near recent highs (SPX 2863.5).
- Sources reported real$ buying lows, 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.
- The 2-Yr yield is up 6.7bps at 2.3266%, 5-Yr is up 7.4bps at 2.3065%, 10-Yr is
up 8bps at 2.4849%, and 30-Yr is up 6.8bps at 2.8823%.

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