Tsys well bid, near recent highs on....>

US TSY FLOWS: Tsys well bid, near recent highs on heavy volume (TYZ>760k),

risk-off to end of week w/equities making new lows after AMZN and GOOGL earnings

disappointed late Thu. "Gettin' out while the gettin's good?", some anxiety over

next wk's Apple and Facebook reports adding to angst.

- US$ index stronger; Sovereign spds wider, BTP/Bund 5Y +8.0, Greece/Bund +12.2;

Gold firmer, but not by much (XAU +2.76); WTI crude -.76 at 66.57; VIX vol index

bounce +2.53 to 26.75 vs. 27.47H.

- Overnight flow included early two-way in 10s and selling in 30s, two-way but

better buying in fronts to intermediates by prop, fast- and real$ during London

hours, two-way in 10s, rate paying in short end, receiving in the belly. Nov Tsy

option expiry should generate additional hedging volume today, rather heavy TYX

open interest. Front quarterly dipped slightly after 3M LIBOR higher set

(+0.0111 to 2.5203%, +0.0432/wk), rebounds few seconds later w/balance of strip

at/near top end wide range, mirroring risk-off support in Tsys.

- Tsy cash/ylds: 2Y 100-04 (2.806%), 5Y 99-24.75 (2.922%), 10Y 98-06.5 (3.087%),

30Y 94-01.5 (3.315%).