Subdued end to a very hectic week......>

US TSY FLOWS: Subdued end to a very hectic week where carry-over Mideast geopol

risk put a damper on more prosaic items such as Fed speakers and headline data

like Dec NFP. Rates surged after weaker than expected Dec employ numbers (145k

vs. 165k est; AHE 2.9% (Forecast 3.1%, Previous 3.1%), Mfg Payrolls Actual -12k

(Forecast 5k, Previous 54k ,Revision 58k).

- Support evaporated for a period, various desk opinions on reversal in Tsys:

Some profit taking from bond auction; Realization NFP doesn't matter much right

now; Preemptive corp rate locks ahead next week's supply. Another desk added:

USD "bid is incentive for selling unhedged FRM longs. But given perception as

mystery, needs a reason or people will fade dip as much as did rally."

- Tsys bounced off lows to extend session highs into midday, some citing

additional risk-off buying on recent Russian navy "aggressive" moves toward US

vessels headlines (incident most likely old), otherwise continued haven buying

into weekend. Yld curves near lows. The 2-Yr yield is down 0.8bps at 1.5702%,

5-Yr is down 1.8bps at 1.6348%, 10-Yr is down 3.1bps at 1.8231%, and 30-Yr is

down 4.8bps at 2.2814%.