And BMO's Aaron Kohli noted on 2Y........>

US TSYS/2Y: And BMO's Aaron Kohli noted on 2Y auction advantages that "the

6-auction average offers a slight positive bias, with four of the last six

auctions stopping through for an average of 0.3 bp through 1pm levels. Seasonals

also favor a stop through 1 pm levels with eight of the last 12 October 2-year

auctions stopping through and only two tailing. This is a decent bias,

especially when adding in the fact that the average October result is a 0.7 bp

stop through." 

- He noted ETF "flows have rebounded with $278 million coming into the ETFs that

we track over the past month. CFTC positions have moved deep into short

territory though we're not at the extremes yet (after adjusting for increases in

open interest). The jump in the short base means that speculators are betting

against the sector and offers a better risk/reward for a rally in the

front-end."