/JAPAN: ### And also BMO's Ian.......>

US TSYS/SUPPLY: /JAPAN: ### And also BMO's Ian Lyngen said this wk's Min of

Finance "again confirms" Japanese buyers "have re-engaged and are adding

exposure to overseas notes and bonds (primarily Treasuries if the historical

patterns hold). Specifically, during the week ended July 28th, investors from

the region purchased a net of $9.6B versus buying of $10.6B in the prior week.

That marks the fourth consecutive week of buying for a total of $35.7 bn." 

- On another note, Japanese accounts such as Kampo and the Japanese mega-banks

"tend to center in on the 7-year note to 10-year notes" in Treasuries buying,

said an observer.