LBBW's Karl Haeling said US Treasuries......>

US TSYS: LBBW's Karl Haeling said US Treasuries and US equities rallied Thu

"with month-end duration extensions supporting bond prices, and a surge in

bio-technology shares for the 2nd straight day pushing the Nasdaq Composite and

S&P Health Care Index to record closes." He adds "the Dow Jones Industrial

Average closed up 55 points (+0.25%). The Nasdaq Composite rose 0.95%, the S&P

Health Care Index gained 1.69%, the Nasdaq Bio Tech index surged 2.84%."

- Haeling said "risk-on sentiment got a boost from a stronger-than-expected

August Chinese Manufacturing PMI report which gave an extra lift to the bull

market in industrial metals, in turn supporting equities. Both stocks and bonds

then received further support from a Reuters story quoting three ECB sources

saying that "a growing number of policymakers" are growing worried about the

rapid gains in Euro, "raising the chance its asset purchases will be phased out

only slowly."

- He said US "economic data was mixed, and once as-expected softness in July's

core PCE Deflator, one of the Fed's favorite inflation measures, was reported,

month-end buying took control" of Tsys mkt.