Tsy futures trading mildly lower,......>

US TSY FLOWS: Tsy futures trading mildly lower, moderate volume (TYZ >225k),

near middle narrow overnight range. Shaping up to be a quiet end to the week,

month/quarter end. Equities little weaker (emini -1.25, 2506.50), gold off

recent highs (+0.16, 1287.49), oil softer (WTI -0.22, 51.34).

- Asia, sources reported light 2-way position squaring into weekend, foreign

central bank buying 3s and 5s, light flattener/steepener unwinds, real$ bought

30s. China and South Korea have some holidays next week.

- London, $manager and carry-over foreign central bank buying, domestic bank

buying 10s as Tsys moved off lows on rally in Bunds. 

- Swaps, spds running steady to mildly mixed, spd curve a touch flatter. Macro

fund paying in 5s vs. real$ receivers in 5s and long end w/other acct receiving

30s, bank portfolio paying in 10s.

- Overnight repo specials in 2s, 3s, 5s, 7s and 10s, 2s abd 3s at fail.

- Eurodollars, mildly weaker in the short end to steady out the strip on modest

volume. LIBOR rates set lower, 1M -0.0028 to 1.2322% (-0.0061/wk), 3M -0.0011 to

1.3339% (+0.0042/wk).