Sovereign Issuance, BOE Gilt Sale Annc Weighs on Tsys

Inside range session for Tsy - well off late morning lows after the bell, US$ index midrange (DXY +.050 at 112.089) while stocks are firmer, they remain off highs after Apple annc production cuts for IPhone.

• Tsys extended session lows in late morning trade - partially tied to larger than expected $5B Saudi 2pt debt issuance as participant hedged/rate locked prior to launch after noon hour.
• Rates staged a modest midday rebound until reversing lower again after BoE confirms resumption of Gilt sales to November 1. Review: Bonds had extended highs overnight after FT article reported the BoE would pause Gilt sales past current Oct 31 resumption date. Bounce short-lived as rates steadily pared gains after the BOE issued statement the FT article was "inaccurate".
• Limited reaction to earlier data: INDUSTRIAL PROD +0.4%; CAP UTIL 80.3%; NAHB HOUSING MARKET INDEX 38 well below 43 est. Later this afternoon: Net Long-term TIC Flows ($21.4B, --) Total Net ($153.5B, --) at 1600ET.
• Fed Speakers: Nothing new from Atlanta Fed Bostic: INFLATION `TOO HIGH', HAVE TO GET `UNDER CONTROL' Bbg, while MN Fed Kashkari speaks on economy participates in moderated Q&A at 1730ET.
• Reminder: Fed goes into media Blackout at midnight Friday, through Nov 3, day after the next FOMC policy annc.