JPM analysts said US Treasury "yields...>

US TSYS/10Y: JPM analysts said US Treasury "yields rose as much as 6-7bp" Wed

morning "only to reverse much of this move ahead of the 5-year note auction."

Thurs, "we expect domestic headlines will take a backseat to the ECB monetary

policy announcement: we continue to expect a 9-month extension at E20bn/mo

combined with a dovish message," they said.

- They add "the 10-year note backs up through the key 2.38-2.425% (yield)

support zone. Sustained breaks cheaper could mark an important medium - to

longer-term signal for the Tsy mkt." 

- But they think "near-term oversold conditions could develop as early as 2.50%,

which would leave the market set up for a potential short-term mean reversion to

lower yields. We saw a similar set up unfold during the summer-2013 taper

tantrum, when multiple TY dollar-weighted Put/Call 1-year z-score signals led to

3-7 day/20-30bp retracements to lower yields even as a broader bear trend

unfolded."