Tsys hold weaker levels across the.....>

US TSY FLOWS: Tsys hold weaker levels across the curve, near mid-range on light

futures volume (TYM<920k), yld curves steeper but well off first half highs. US$

index near lows (DXY -.110, 97.196); US equities making session highs late (SPX

+36.25, 2788.25).

- Disappointingly quiet FI trade to kick off the week -- not really a risk-off

move though equities are extending session highs late. Focus on Brexit talks as

PM May travels to Strasbourg to drum up support  w/EU's Juncker. Support in GBP

on "positive" talk headlines -- tempered on follow-up headlines walking back

positive tone.

- Tsys started day on back foot, taking cue from weaker EGBs. Better selling

across the curve after better than expected Jan retail sales--followed by dip

buying on down-revision for Dec number, a near wash. Two-way flow from props and

fast$, in front end, real$ sellers in 10s, swap-tied selling in 2s-5s, modest

deal-tied flow in the mix.

- Tsy cash/ylds: 2Y 100-01.25 (2.477%), 5Y 99-21.75 (2.442%), 10Y 99-27

(2.641%), 30Y 99-11.5 (3.032%).