And the JPM analysts also said on....>

US TSYS/SUPPLY: And the JPM analysts also said on 3Y, and 10Y auctions Wed that

"although yields have risen substantially since the last auctions in September

and are now sitting near their highest levels since the spring, technical

dynamics could make" the Wed "supply more challenging to digest.

- "Our previous analysis shows that end-user participation and bid-to-cover

ratio tend to be lower when 10-year notes are auctioned on the same day as the

3-year note," they said. "Moreover, dealer inventories in intermediate and

long-end Treasuries remain near multi-year highs and add to the challenging

setup. Given these factors, we think tomorrow's auction will require a

concession from current levels to underwrite smoothly."