Tsy futures spiked higher following....>

US TSY FLOWS: Tsy futures spiked higher following reports of explosion at NY

subway station (42ND STREET, 8TH AVE), made new highs and holding stable off

highs at moment. Volume rather thin w/TYH just over 215k. Equities mildly higher

(emini +1.00, 5655.0), gold firmer (XAU +1.67, 1250.17), oil firmer (WTI +0.20,

57.56).

- Asia, Tsys opened with a mild bid, holding narrow range into London

cross-over. Flow included Japanese insurance portfolio buying in long end, 5s30s

flatteners in cash.

- Carry-over bid into London hours, curve bull flattened following NY subway

explosion. Long end paring move amid reports suspect is in custody. Sources

reported sellers in 5s and 30s, pre-auction short sets.

- Spds running wider, spd curve flatter at moment; flow includes fast$ receivers

in 5s earlier, paying in 2s and 5s during London hours.

- Eurodollar futures, decent short end selling following the 3M LIBOR set

(+0.0147 to 1.5635%, +0.0542 last wk), knocking EDZ7 down 0.007 from prior trade

to steady.