Cantor Fitz analyst Justin Lederer......>

US TSYS/30Y: Cantor Fitz analyst Justin Lederer said the US Treasury market "has

traded in the red throughout the morning and early afternoon. Initially the

market was led lower by the front of the curve, but this would change as the

session progressed with the long end catching up and taking over attributed to

setups ahead of today's 30 year auction. Treasuries encountered a small uptick

around 12:30PM with the headline that Rand Paul can't vote to add to massive US

debt, but the market (notably long end) would quickly hit a wall and head back

lower." (The long end later lifted  off the price lows.)

- He added that the $12Bln 30 year auction "stopped short by 0.4bps at 2.803%

(~98-30). Stats: 61.9% awarded to indirects and 9.0% to directs leaving Primary

Dealers with 29.1%. Post auction, the bond is hovering a few tics above its

stop."