LBBW's Karl Haeling said that the U.S....>

US TSYS/5Y: LBBW's Karl Haeling said that the U.S. markets "do face Treasury

supply" as "Wednesday will see 2-year FRN and 5-year note auctions followed by a

7-year note sale on Thursday. While quarter-end could diminish auction demand

somewhat, this week's traditional fixed rate auctions don't settle until Oct 2,

the start of a new quarter, there are further signs of underlying short

positions in the market and month-end should produce better buying." 

- He adds the JP Morgan weekly fixed income investor survey "showed that long

(Treasuries) positions among All Clients fell to 11% from 16" in prior week

"while short positions rose to 30 from 23%."