Would have been a rather quiet start...>

US TSY FLOWS: Would have been a rather quiet start to the week, risk-off tone

with Tsys regaining some ground (on light volumes, TYM<685k) after Fri's sharp

sale as equities sold off (ESM0 extending session lows late -63.5 at 2806.5).

- But then West Texas crude fell apart: making history by trading negative for

the first time: May WTI -37.63 settle, Low -40.32. -20.30 last. Incidentally,

the daily price limit for the May WTI futures was 0.01 -- why some screens stuck

there. Otherwise electronic trade close at 1700ET. Reminder: The contract

expires tomorrow and soaring storage costs continue to roil physical delivery.

- Some questions re: negative strike options ... nothing listed/priced yet: the

CME said "would consider" negative pricing IF/ONCE WTI traded between $8-$11bbl

just happened ... not going to add strikes on the fly.

- Modest two-way deal-tied hedging on some $3.65B issuance, total for week

estimated >$40B.

- Decent option volume w/buyers of low delta wings in 2s-10s. The 2-Yr yield is

up 0.2bps at 0.2037%, 5-Yr is down 1bps at 0.35%, 10-Yr is down 2.5bps at

0.6163%, and 30-Yr is down 3.5bps at 1.2255%.