Tsys weaker by the bell but.........>

US TSYS SUMMARY: Tsys weaker by the bell but choppy -- risk-on? Maybe --

equities are certainly higher but maybe a bit over their skis ahead Wed's FOMC

minutes release. Initial risk on tone more debatable, more of a relief move

after conciliatory remarks from China pres Xi at Boao eco conf overnight. Rates

sensitive to trade headlines -- Tsy spiked briefly during London hours on Bbg

headline that US rejected "China offer to cut trade deficit by $50B".

- US$ Index lower (DXY -.229, 89.609); equities stronger/off highs (emini +37.5,

2656.5); gold higher (XAU +4.14, 1340.49); West Texas crude gapped higher (WTI

+2.35, 65.77) year high around 65.88 on March 23. Likely impetus a recent

Reuters headline: "SAUDI CROWN PRINCE SAYS IF CIRCUMSTANCES DEMAND IT SAUDI

ARABIA COULD BE PART OF INTERNATIONAL SYRIA RESPONSE".

- $30B 3Y note auction on the screws, yld 2.450% on Bid/Cover 2.85 vs. 2.94

previous, dealers took 40.88%, Indirects 47.55%, Directs 11.57%. Surprisingly

large corp/supra-sovereign issuance, the latter on $11B Saudi Arabia 3-way

($4.5b Saudi 7Y +140, $3b 12Y +175, $3.5b 31Y +210). Mixed, 2-way flow

- Late ylds: 2Y 2.307%, 3Y 2.441%, 5Y 2.621%, 7Y 2.736%, 10Y 2.797%, 30Y 3.017%