BMO's Ian Lyngen said that "we.....>

US TSYS/RESEARCH: BMO's Ian Lyngen said that "we find ourselves cognizant that

this particular Friday the 13th holds the potential to be rather eventful in the

Treasury market. We've been looking for buying opportunities all week and the

persistent bid has offered little solace for that bias. The strategy of buying

any backup in yields in the wake of this morning's data is consistent with our

broader take on the direction of the market and so we'll retain that skew as we

look toward the day ahead."

- He adds "our tendency to view auctions as bullish directional events has left

us inclined to come out" of the latest 3/10/30-year auction "process with a long

in Treasuries, which found further backing in this week's price action. The

relatively strong sponsorship for the first Treasury supply of Q4, most notable

the long-bond, has brought the market decidedly off of the recent yield peaks.

In doing so, we're aware that two distinct changes have occurred. First,

momentum has finally (and definitively) shifted in favor of a more significant

rally - a development made all the more relevant by the fact 10-year yields are

currently in the process of testing the 200-day moving-average at 2.314%."