Analysts at BMO noted on Tsys........>

US TSYS/SUPPLY: Analysts at BMO noted on Tsys futures positions that "we've seen

a drift towards increasing shorts and a closing of longs in the past few weeks,

with 2s and 5s especially leading the charge to increase shorts." 

- They wrote last week that "there was no evidence that shorts were being

reduced in 2s and 5s and as such, that view has been largely borne out by the

last CFTC data released on Friday which showed new shorts in 2s and 5s and longs

being cut in 10s and the long bond. The data are as of Oct. 3, but changes in

open interest and price action since then lead us to the view that shorts have

only increased since the middle of last week. The positive (US Sept) payrolls

report on Friday with the strong average hourly earnings component likely has

added to the base of investors willing to sell the sector."