Tsys broadly higher but paring late...>

US TSY FLOWS: Tsys broadly higher but paring  late session highs after the bell.

Long end extended pre-open highs twice, catching up with Bund rally earlier.

Curves mixed, 3M10Y extended inversion to new 12 year lows earlier, 5Y30Y

reverses early steepening, near lows late. US$ index firmer (DXY +.160, 96.896);

equities grinding off midday lows (SPX -9.0, 2814.0).

- Coming into session the Jun 30Y bond traded in red briefly -- whole curve

traded well off pre-open highs following Bunds and Gilts lead all day. Front end

well bid -- EDZ9 gradually pricing in chances of 50BP rate cut.

- Little react to data on day, some forced unwinds, weak shorts stopped out,

technical support, positioning ahead multiple Fed speakers Thursday.

- Heavy Eurodollar put option flow, highlight: >100k EDZ 71/72/73/75 put condors

from 3.5-4.0 on day, scale buyer at 3.5-4.0 adding to +120k position from 5.5

high over last week.

- Tsy cash/ylds: 2Y 100-02.88 (2.202%), 5Y 100-31 (2.165%), 10Y 102-05.5

(2.375%), 30Y 103-19.5 (2.819%).