BMO's Ian Lyngen quipped about.....>

US TSYS/RESEARCH: BMO's Ian Lyngen quipped about the "Ultra Bomb" i.e., the

Ultra Long Bond idea floated by Tsy in recent months but not touched on in

today's initial Aug. refunding news. "There are times when it's what's left

unsaid that matters the most, and today proved to be one of those instances,"

Lyngen said. "The Treasury Department's refunding announcement offered very

little new information on the potential for an ultra-long bond, adding only that

they are still 'studying the matter. It wasn't especially surprising that the

decision has been put off until later this year; the debt-ceiling issue is an

obvious hindrance to the introduction of a new benchmark. The Treasury

Department did at least hint that the increased borrowing as a result of SOMA

rollover would be "addressed by increasing issuance in bills and a broader set

of coupons," but that wasn't really helpful in the traditional sense."