And BMO analyst Ian Lyngen adds......>

US TSYS/SUPPLY: And BMO analyst Ian Lyngen adds the Treasury auction "calendar

this week will be a bit more jammed than usual with 3s and 10s" auctions on

Wednesday "and four bill auctions in the day ahead. We're biased to favor buying

10s especially if we get yield levels closer to or over 2.40%, and believe that

the 3-year auction early on Wednesday might face a few more headwinds." (Cash

10-year note is at 2.332%.) 

- He adds that "with the decline in bid/cover ratios recently and the Fed's

continued hawkish talk, we're not confident that we'll see a surge of investors

willing to stand in the way of the Fed just yet as the 3-year would be one of

the sectors most punished by an early and steep hike path. Positioning continues

to move against the front-end and belly, but we're not ready just yet to be

buyers of the 3-year."