While UK PM May support continues to...>

US TSY FLOWS: While UK PM May support continues to solidify, Tsy futures bumping

around recent session lows as equities make new session highs (SPX 2686.5).

GBP/US$ bumping around top end of range (+0.0155 at 1.2642) 

- Trade has grown quiet, awaiting 1600ET earliest release of May confidence

vote. Earlier misc acct short covering, fast$ and prop acct buying after

headline on US rejecting EU trade reform proposal. 

- Swap spds wider -- Large two-way in 2s tending toward better rate paying from

2.9145-2.9163%, payer in3s at 2.8925%, two-way in 4s from 2.8725-2.8775%,

two-way in 5s tending toward better paying in 5s, and payer in 10s at 2.9445%.

Mixed fly trade: 2s3s4s and 2s5s7s receiver flys, 2s3s5s and 2s5s10s payer flys.

- Another small tail, US Tsy $24B 10Y auction (9128285M8) awarded 2.915% rate

(3.209% in November; 3.112% avg) vs. 2.910% WI; 2.35 bid/cover (2.54 previous).

- Thursday: Weekly jobless claims (215k est); November import/export price

indexes; Nov Treasury budget balance (-$204.0b); $16B 30Y Bond auction. 

- Tsy cash/ylds: 2Y 99-30.5 (2.772%), 5Y 100-16 (2.766%), 10Y 101-27 (2.908%),

30Y 104-11 (3.149%).