Tsys bouncing around top end of........>

US TSY FLOWS: Tsys bouncing around top end of range, decent futures volume after

the bell (TYM>650k), yld curves mostly flatter (3M10Y near inversion first time

in over 10 years) 5Y30Y bucking move at mildly steeper. As noted earlier, follow

through bid in Tsys after huge German PMI miss sent Bunds sharply higher.

- Equities weaker but attempting to move off lows since the open (SPX -14.0,

2848.5); US$ index little firmer/ well off early overnight lows (DXY +.203,

96.698).

- Decent overnight flow included better CB selling short end along w/bank

portfolio and dealer acct selling in 2s-3s, two-way in 10-30s ahead London

trade. Better buying prop,, fast- and real$ in 5s-10s on Bund move, bank and

real$ buying long end vs. mild prop selling.

- Tsy cash/ylds: 2Y 100-07.75 (2.368%), 5Y 100-13 (2.286%), 10Y 101-08.5

(2.478%), 30Y 101-21.5 (2.914%).