Tsy trading firmer but near low end....>

US TSY FLOWS: Tsy trading firmer but near low end overnight range, decent

futures volume (TYM>320k) even w/ Japan out for wk. Curves mostly adding to

Mon's bear steepening, 3M10Y flatter. Relative quiet at start of two-day FOMC. 

- Equities inch back to steady after paring early overnight gains (SPX +0.5,

2943.5)

- Overnight flow included carry-over Block sales in Jun 5Y futures (-9,665 FVM

115-17), misc accts remained bid, mixed curve flow w/2s5s flatteners and 5s30s

steepeners, mild deal-tied selling.

- On tap for Tuesday: Q1 ECI; Redbook retail sales m/m; ISM-Milwaukee Mfg Index;

Case-Shiller Home Price Index; MNI Chicago PMI; NAR pending home sales index;

Conference Board confidence; Dallas Fed services index; FOMC policy meeting

kicks off.

- The 2-Yr yield is down 0.4bps at 2.2882%, 5-Yr is down 0.2bps at 2.3099%,

10-Yr is up 0.4bps at 2.5288%, and 30-Yr is up 0.4bps at 2.9586%.