Outright flows were modest and option activity was mostly been driven by calendar rolls. One Mid-West bank was heard buying 5,000 September 106 calls on 10-year notes and selling 10,000 June 106's. Volume generally traded flat-to-weaker after Friday's sell-off as Fed tightening bets get deferred into the future.
For most of the session the June bond bumped its head against 100-20 resistance where two large dealers had been on the offer, but later broke through to close up 6/32 at 100-24 after another downleg late on stocks. The two-year note and 30-year yield spread was rock steady around +235-236 basis points and Coca-cola Enterprises priced $1 billion in two-year notes and five-year notes. But this supply had little direct bearing on the curve, which is skewed nominally for curve flattening, with a $1.5 billion bond buyback Tuesday and a $25 billion two-year auction Wednesday.