Long end Tsys went out around late.....>

US TSY/RECAP: Long end Tsys went out around late session lows, after 10-Year

yields marked a new cycle high of 3.0334%; the shorter end of the curve was

relatively stable, with the curve sitting steeper on the day as a result.

- Decent futures volume was noted (TYM>1.4M), with a chunky steepening position

blocked against a German flattener (+100.17k FVM 113-08.5 vs. -63.88k TYM

119-03; vs. Bund/Bobl flattener +29150 RXM8 at 157.81 vs. -65360 OEM8 at

130.61).

- Modest deal-tied flow was seen, with note-auction hedging ahead of 5-Year

supply also observed. The auction stopped through screens, with direct

acceptance ticking higher and a steady cover ratio.

- Option flow was rather bullish, in context, as accounts booked profits on puts

while opening long calls to fade the current sell-off.

- Focus on Thursday will fall on the ECB's MonPol decision, US Durable Goods

data and 7-Year Note supply.

- T-Notes last at 119.02+, 10-Year yield last at 3.026%.