*** Trading broadly higher but......>

US TSYS SUMMARY: *** Trading broadly higher but well off late AM highs, rally

largely due to delayed react to dovish ECB Draghi comments after steady policy

annc earlier; weaker equities (emini -3.75, 2460.0) and USD, strong move in gold

(1349.79/H) added to risk-off tone.

- Not much react to wkly claims +62k to 298K, focus more on ECB annc. Tsys

ratcheted higher w/EGBs. Flow included prop and fast$ buying 5s and 10s, bank

port', real$ buying 10s, 30s, stops triggered on way up, fast$ sales short end. 

- Second round of buying late morning w/real$, bank and insurance portfolio

buying long end prop, fast- and real$ buying 5s and 10s, 5- and 10s vs. 30s

flatteners. Sporadic profit taking on way up, deal-tied selling and rate paying

as spd curve continues to flatten.

- USD/Yen tested 10M lows (108.34), as did 10- and 30Y Tsy ylds (2.035% and

2.653% resp); sovereign peripherals mostly tighter vs. Bunds, Switzerland little

wider, while Greece 10Y +3.5 to around 513.0. 

- Swap spds wider early, modest paying in 2s, 5s and 10s w/5- and 10yr spds

2-3bp wider, appr 4-wk highs., ongoing repo specials that adds to widening.