A tight re-open for T-Notes, -0-01+ at......>

US TSYS: A tight re-open for T-Notes, -0-01+ at 129-26. Tsys finished little

changed Weds, T-Notes going out near lows on restrained volumes, cash cheapened

at the margin, by up to 1.0bp across the curve. Local data remained ltd, with

the Fed in blackout ahead of next week's MonPol meeting. Brexit headline

watching at the fore, although no EU decision re: deadline extension is expected

til Friday (most point to the likelihood of a 3-month extension despite some

rumblings against the idea). The latest 5-Year auction was solid, stopping

through by 0.4bp, cover ratio edged higher & indirect participation picked up,

with dealer & direct participation softening. Flow-wise, Weds saw block sellers

of ultra bonds in the NY afternoon, as well as a late US/WN steepener block.

- The NY Fed announced a beefing up of the sizes offered at its upcoming

overnight and term repo ops (see earlier bullet for greater detail), to " to

ensure that the supply of reserves remains ample even during periods of sharp

increases in non-reserve liabilities, and to mitigate the risk of money market

pressures that could adversely affect policy implementation."

- Docket picks up Thurs, with durable goods, flash PMIs & 7-Year supply due.