Tsys largely ignored the record........>

US TSY FLOWS: Tsys largely ignored the record decline in private payrolls for

Apr (-20.236M; Mar revision -149,000 vs. -27,000), focus instead on Tsy

refunding that will include $20B 20Y nominal coupon bond (May 20 auction).

- Tys gapped lower with increased Tsy supply in long end. Lower than anticipated

bill supply helped bear steepen yld curves.

- Holding near steady for much of second half, equities sold off late/extending

bottom of range: DJIA -218.45 (-0.91%) at 23664.64; S&Ps- 24.75 (-0.87%) at

2833.5. 

- Swap spds gapped tighter on Tsy record refunding annc includes $20B 20Y. 10Y

spds are back to late Mar lvls. Short end resisted move w/focus more on long end

Tsy supply. Surge in number of corp debt issuers added to moves in rates and

spds: near $30B total from 16 issuers. 

- The 2-Yr yield is down 1bps at 0.1784%, 5-Yr is down 0.5bps at 0.3702%, 10-Yr

is up 4bps at 0.7014%, and 30-Yr is up 7bps at 1.402%.