Trades higher after the bell, quiet....>

US TSY FLOWS: Trades higher after the bell, quiet for much of the session after

Tsys extend late overnight lows heading into the NY open. Initial gap lower

tracked Bunds after 5-yr N/Ireland backstop limit headline--rebound soon after

as Germany denied. Rates reversed losses (Block buys in FVM and TYM early), made

new session highs after the bell amid new quarter/asset allocation chatter out

of equities into Tsys. Equities near lows (SPX -18.0, 2880.25); US$ index off

lows (DXY -.062, 96.988). 

- Session flow includes bank and real$ buying 10s and 30s early, decent

deal-tied selling on inaugural $12B Saudi Aramco 5-part issuance (3Y-30Y span).

Decent two-way option flow, some put spread unwinds in Dec Eurodlr options

- Latest $38B 3Y note auction (9128286M7) awarded 2.301% (2.448% previous) vs.

3.300% WI going into auction, bid/cover 2.49 vs. 2.56 previous (3.07 avg).

- On tap for Wednesday: CPI; Atlanta Fed inflation; Mar Kansas City Fed LMCI;

Mar Treasury budget balance; March FOMC minutes.

- The 2-Yr yield is down 1.6bps at 2.3456%, 5-Yr is down 2.3bps at 2.3038%,

10-Yr is down 2.2bps at 2.5006%, and 30-Yr is down 1.3bps at 2.9141%.