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Bonds Pare Gains

US TSYS
  • Treasury curves inch off flatter levels over the last half hour as bonds trim gains - USU3 back inside the overnight range (USU3 +8 at 120-00 vs. 120-14 high; TYU3 +.5 at 109-14.5 vs. 109-23.5 high).
  • Markets fairly skittish despite high volumes (TYU3 > 1.27M) tied to Sep/Dec rolling ahead the latter taking lead quarterly position this Thursday.
  • Curves are off earlier flatter levels (2s10s -11.668 at -86.153 vs. 88.222 low) despite some pre-auction short setting ahead today's $45B 2Y note auction at 1130ET, and $46B 5Y Note auction at 1300ET.

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