Jefferies economist Tom Simons noted....>

US TSYS/30Y: Jefferies economist Tom Simons noted today's $12 bln 30-year bond

reopening "stopped 0.3 bps short of the 1:00PM WI bid at 2.804%. This auction

generated very similar statistics to the November new issue."

- He added the "2.48 bid/cover ratio is at the upper end of the recent range,"

while "indirect bidders took down 61.9% of the auction which is less than 1%

below the recent average. The Direct bid took down 9%, which is at the upper end

of the range and made up for the modest weakness on the part of Indirects.

Dealers took down 29.1% of the auction, marginally below the recent average."

- He adds that "as has been the case for a while now, the auctions in the

long-end present a liquidity opportunity for investors. Bonds are pretty stable

in this area as 4 of the past 5 auctions have stopped between 2.79% and 2.818%.

Even the exception in October wasn't that far away at 2.87%."