MNI: Tsys prices ended lower Tuesday but the.........>

MNI: Tsys prices ended lower Tuesday but the market stabilised somewhat at the

lows, after some mild dip buying seen after a weak $20B 10Y reopening.

- Amid post-auction redistribution sales, 10Y notes managed to hold key 2.180%

30-day moving average levels, which brought in cautious dip buyers who

stabilized market. 

- Tsys earlier traded near session lows approaching the 10-Year auction,

persistent risk on tone, ongoing rebound in USD and stronger stocks adding to

the move. Tsys ratcheted lower mid way through the U.S. morning session with

similar moves in Gilts. Limited data, the Fed is in black-out period until next

week's FOMC.

- US Govt bonds saw end-user buying in front end, selling in cash 30Ys and mixed

intermediate flow. Pre-auction short-setting into 10Y auction occurred with

corporate rate-lock hedges amid busy corporate bond issuance. US swaps ended

mixed, wings wider while intermediates tightened on late supply hedge unwinds. 

- T-Notes open Asia flat at 126.21, 10-Year yield last at 2.167%.