And JPM analysts urged to "hold....>

US TSYS/RESEARCH: And JPM analysts urged to "hold a 50%" Treasury 2-year note

"long from near 1.785%, and use a stop just through 1.92%. Trail the stop to

breakeven if the market richens through 1.72%. Exit near 1.65%."

- They add on cash 10-year notes that "for the time being, the bear trend stays

firmly in gear while cheaper than 2.40%. We took profits on 1/3 of our suggested

short strategy near 2.50% and are targeting near the rich end of the 2.63-2.69%

support zone to exit the rest of the trade. We continue to think a bearish trend

extension of that magnitude would push indicators like those mentioned above

firmly into oversold territory, set the stage for a mean reversion to lower

yields, and define the cheap end of a new medium-term range."

- They add that in their "2018 Outlook, we used the sporadic nature of the

2003-2007 Treasury intermediate sector bear market as a guide for what to expect

next year. From that perspective, the Sep-Jan trend to higher yields would

likely lead into another multi-month period of range-bound price action, where

support in the 2.60s can contain the market through mid-year."