Tsys seesawed mildly higher on day,....>

US TSY FLOWS: Tsys seesawed mildly higher on day, near highs on narrow range,

long end coming under mild pressure after the bell. US$ index firmer/near top

end narrow range (DXY +.197, 97.288); equities little firmer (SPX +1.5,

2881.25). 

- Tsys followed Bunds higher earlier after weaker than expected factory order

data (not to mention GDP forecast cut late Wed). Curves see-sawed to mildly

flatter. While curve steepener interest pretty consistent last few weeks, there

have been large flattener blocks (Eurodollar options and 2s10s Tsy futures) last

two sessions. Lead quarterly Eurodollar futures EDM9 well bid after 3M LIBOR set

-0.0091 to 2.5886% (-0.0111/wk), otherwise Whites-Reds underperforming as yr-end

rate cut chances moderate. Two-way flow in 2s-10s, position squaring from prop,

fast- and real$, modest bank support long end. On tap for Fri: Nonfarm and

private payrolls, unemployment rate and average hourly earnings for March; St.

Louis and NY Fed GDP Nowcasts; February consumer credit after the bell.

- The 2-Yr yield is up 0.2bps at 2.3369%, 5-Yr is down 1bps at 2.3168%, 10-Yr is

down 1.3bps at 2.5115%, and 30-Yr is down 1.2bps at 2.9219%.