*** Several factors contributing to the.....>

US TSYS: *** Several factors contributing to the seemingly inexorable steepening

in yield curves (5s30s at 3Y highs/pre-QE range). Current levels:

* 3M10Y  +6.435, 65.55 (L: 56.951 / H: 66.885)

* 2Y10Y  +5.834, 61.224 (L: 54.733 / H: 61.822)

* 2Y30Y  +6.188, 140.048 (L: 133.181 / H: 140.763)

* 5Y30Y  +3.218, 119.566 (L: 116.344 / H: 119.92)

Contributing to latest directional bear steepening as 10Y broke appr 2M range:

- Focus on expectations of yield curve control probably in the short end within

next five years (Mester).

- Rebound in equities (no V or sideways L, more like the Nike swish logo) is

evaporating buy interest in riskless long-end assets.

- Indicative of (mild) increase in inflation expectations: Unit Labor Costs at

5.1%, OfM expectations and rising oil.

- Perhaps out of left field, one desk suggests the Tiananmen Square anniversary

"is the center of a lot of long end callable. Maybe something going on there.

But move is global."