FTN Financial's Jim Vogel said the.....>

US TSYS/TIPS: FTN Financial's Jim Vogel said the 10Y TIPS reopening auction

"award at 0.450% contrasted with the 0.430% bid at the deadline" and "0.415% 30

minutes before the sale. Tender at the high was 11.9% and bid/cover of 2.3x well

in line with reopenings, just not stellar."

- He adds that "dealers at 27.3% were assisted by 70.4% indirect participation,

again in the correct ballpark."

- He noted "yields continue to flatten with a gradual reduction in longer infl

expectations, some of which is related to FOMC communications and some related

to hedging of this afternoon's TIPS supply. Treasury sentiment is better on

active 2-way flows, stemming from modest declines in stocks and Trump's new

sanctions on N Korea. Consumer stocks are hit hard this morning in the S&P 500,

and leadership from industrials is modest at best."