And BMO's Ian Lyngen quipped that.......>

US TSYS/10Y: And BMO's Ian Lyngen quipped that "we'll be the first to wince at

the notion of being long 10s ahead of a known (Treasury auction) seller of $23

bn on Wednesday afternoon at 1 pm, but as a sage of the repo market once aptly

concluded, 'hey, everyone knows that auctions bring out buyers.' Wise to be

sure, although painful in the moment, for anyone anticipating the return of term

premium via the introduction of $15 bn more in long bonds to the market."

- He adds, "let us not snatch defeat from the jaws of victory, after all, we

came into this week with a bias to see 5s/30s breakout flatter with a target of

75 bp. The market is not there yet at this point, but Tuesday's price action saw

the curve reach 78.7 bp intraday. We don't point this out to lure compliments,

but rather to highlight that the flattening has further to run before

encountering meaningful resistance." (The 5/30-year curve now is at +78.90 bps.)