Repeats: Corrects label:.....>

US TSYS/OVERNIGHT REPO: Repeats: Corrects label: The overnight repo market Wed

saw the US Tsy 2-year note continue tight, while the Treasury General Collateral

keyed off the Overnight Bank Funding Rate (OBFR). - The Treasury General

Collateral rate rose as it now pushes "off of OBFR," vs. prior pattern of the

G/C rate keying off the day's one-day Fed Reverse Repo operation, said traders.

(See New York Fed link: https://apps.newyorkfed.org/markets/autorates/obfr). 

- That occurred as the OBFR on Tuesday, Dec. 19th rose to 1.42% vs. Monday 1.41%

and vs. 1.16% on Dec. 13th, the day the Fed lifted the fed funds rate by 25 bps.

- The two-year note demand occurred amid shorts related to next week's

2/5/7-year Treasury auctions, which will be announced this Thursday at 11:00

a.m. ET, said traders. 

- The Treasury General Collateral rate rose to 1.44%, vs. 1.40% Tuesday.

Meanwhile Agencies traded at 1.49%, while Agency MBS was at 1.50%. The 3-year

notes traded at 1.38%, 5-year at 1.15%, 10-year at 1.15% and 30-year at 1.38%.