Tentative Early Flattening As Previous Session's Moves Mulled

A light schedule Friday offers the opportunity to digest Thursday's large Tsy swings, with the curve a little flatter vs overnight but nowhere near Thurs's flattest levels.

• Explanations for Thursday's rally /flattening post-strong data ranged from short covering / over-wrought pricing in of econ recovery expectations / US-Russia tensions / foreign buying / good data = bad news for fiscal stimulus / suddenly taking the FOMC's dovishness at face value.
• The subsequent post-1500ET long-end sell-off /steepening likewise attributed to multiple factors, including that the rally had gone too far too fast / US-Russia tensions not quite as bad as feared; aided by a round of selling in futures, covering maturities from FV right out to US & WN.
• As it stands, 5s30s are trading around where they were pre-0830ET Thurs data dump: 2-Yr yield is up 0.2bps at 0.1612%, 5-Yr is up 0.2bps at 0.8194%, 10-Yr is down 0.3bps at 1.5728%, and 30-Yr is down 1bps at 2.2595%. Jun 10-Yr futures (TY) down 8.5/32 at 132-12.5 (L: 132-08.5/ H: 132-16)
• Mar housing starts out at 0830ET, and prelim April UMich Sentiment at 1000ET rounds out the week's data. Dallas Fed Pres Kaplan is the final scheduled Fed speaker before the pre-FOMC blackout period begins this weekend. He appears twice, at 1045ET and 1230ET.
• No supply. NY Fed buys ~$1.225B of 7.5-30Y TIPS.