Clarifies: Treasuries drift off..........>

US TSYS/2Y: Clarifies: Treasuries drift off session high prices after a

good/mixed $26B 2Y auction, which drew a 1.765% rate but a soft 41.2% indirects

(vs. Oct 48.2%, Sept. 44.2%), but quite good 16.99% directs (vs Oct 14.2%, Sept

19.04%, leaving a relatively large 41.9% for dealers to mop up (vs. Oct 37.7%,

Sept 36.8%.)

- FTN Financial's said the 2-year note auction had an "award at 1.765% versus

1.766% WI bid before the sale and 1.770% 10 minutes prior. Tender at high yld

was 97.9%, high but not a shock, given this morning's odd rate behavior and

falling ylds into the deadline. Dealer position of 41.2% is among the highest in

the last 12 months (excluding Nov and Dec holidays)."