BMO analyst Ian Lyngen noted that the...>

US TSYS/10Y: BMO analyst Ian Lyngen noted that the Treasury curve "flattened

further on Tuesday and that was really the only thing of note that happened.

There are moments in the market, like this one, when the price action itself is

the 'event' rather than anything truly fundamental. The flattening was driven by

a rally in the long-bond (30-year) which outperformed in outright terms as well

as on the curve with yields dipping to 2.767% intraday and challenging the 61.8%

retracement of the post-September selloff."

- He adds that "the move is important for a few reasons, not least of which is

that the long-bond has rallied 21 bp since the end of October and steadily

improved into the November Refunding. For those of us who have been in the

market for a cycle or two, once upon a time, Treasury auctions led to higher

yields by way of an auction accommodation."

- He quips that "certainly hasn't been the case recently, which only serves to

embolden our bullish bias on the Treasury market with an eye on 2.25% 10-year

yields."