Ahead of today's 20-Year supply.............>

US TSYS: Ahead of today's 20-Year supply J.P.Morgan note that "the June

reopening cleared at 1.314%, 1.5bp rich to pre-auction levels, as end-user

demand rose to 78.1%, a 2.7%-point increase from the inaugural auction in May.

The details show that this increase was driven by foreign sponsorship, which

rose 3.3%-pts to 16.4% last month, while investment manager demand declined

modestly to 57.4%. 20-year yields have declined 22bp since the June auction, and

the 20-year sector appears fairly valued along the curve after adjusting for the

level of yields and the slope of the curve. Overall, the 20-year sector has been

supported by end-user demand over the last two months, and we think this is a

prerequisite for tomorrow, especially with long-end yields near their lowest

levels of the past two months and relative valuations no longer cheap."