Tsy futures trading weaker, long end...>

US TSY FLOWS: Tsy futures trading weaker, long end off lows, decent volume

(TYH>295k). Mild US$ bounce, equities resume climb to new highs (emini +5.0,

2716.0), gold little softer (XAU -0.10, 1313.15), West Texas crude topped 62.20

O/N, WTI currently +0.22, 61.85. Wkly claims lock-up canceled, release on web as

blizzard expected to hamper volume, ADP private employ data at 0815ET.

- Asia, Tsys opened weaker on decent volume w/Japan back from extended New Year

holiday, risk-on as Nikkei surged +741.39 (+3.26%), Tsys held lower range into

London open. Sources reported bank and pension fund buying in 2s-5s and 30Y

bonds, Asia real$ bought 10s.

- London, Tsys followed core EGBs lower, French and Spanish debt supply

weighing. Bank portfolios bought 10s, props bought steepeners earlier followed

by continued selling in the intermediates. Modest buying in long end

- Swaps, spds running mildly tighter on back of swappable issuance return Wed,

rate payers in 4s, bank receivers in 5s, 5s6s9s 5s6s10s and 5s6s30s fly paying

belly, 4s5s steepener.

- Eurodollar futures, decent selling EDH8 (-49k 98.19, -0.020).