Another day of weaker rates, Tsy.......>

US TSY FLOWS: Another day of weaker rates, Tsy futures off session lows/near

midrange on a much more subdued session compared to slog lower in first half of

week. Equities higher (ESU9 +22.0) along with Gold (+10.33). Yld curves mildly

steeper for the most part.

- Little react to data, many appear sidelined ahead Thu's ECB policy annc,

anticipating a policy 'Bazooka' from ECB Pres Draghi.

- Decent corp supply again, generating hedging flow in 3s, 5s, 10s and 30s.

Another small tail, latest US Tsy $24B 10Y note auction (912828YB0) awarded

1.739% rate (1.670% in August) vs. 1.735% WI; 2.46 bid/cover (2.20 previous).

Indirects drew 62.61% vs. 55.72% prior (51.41 avg), directs 12.72% vs. 13.56%

(12.41% avg), and 24.67% for dealers vs. 30.72% prior (36.17% avg).

- Two way flow helped maintain the range after better selling from real$ in long

end coming into the session

- The 2-Yr yield is up 0.2bps at 1.6783%, 5-Yr is up 0.5bps at 1.5965%, 10-Yr is

up 1bps at 1.742%, and 30-Yr is up 0.6bps at 2.222%.