FTN's Jim Vogel said that a 30-year.....>

US TSYS/30Y: FTN's Jim Vogel said that a 30-year bond auction "award at 2.801%

was a stretch goal this morning, but attracted 61.8% in indirects to match usual

participation on the larger refunding sales. Dealers own 31.8%, below the

35%-37% they were likely concerned about as bond prices rallied in late

morning."

- He adds that "only 39.2% were allotted at the high bid, suggesting a buying

base well below 2.80%. Bid/cover of 2.23x was among the better figures for the

$15bb size in the last 15 months. WI bid at deadline was 2.805% after sitting as

high as 2.820% for much of the morning. FTN's target award this morning was

2.800%."