T-Notes have regained some poise after a....>

US TSYS: T-Notes have regained some poise after a sharp, limited sell off ahead

of the close. The late NY move was triggered by U.S. Tsy Sec Mnuchin stating

that the issuance of ultra-long bonds is under "very serious consideration."

Mnuchin suggested that "if the conditions are right, then I would anticipate

we'll take advantage of long-term borrowing," as he confirmed that officials

held a meeting earlier on Wednesday to review "the possibility." N.B. comes

after recent announcement of a broad outreach programme on the matter.

- T-Notes last 131-10+, -0-01. Wednesday saw the cash curve twist steepen.

- The latest twist in the Brexit saga helped to support Tsys in the EU morning,

with T-Notes pulling back from best levels during early NY hours as U.S.

equities opened higher, before paring back, which leant some light support to

bonds. A strong round of 5-Year supply stopped through by 1.0bp, saw the cover

ratio tick up & generated solid internals, helping to support the space later in

the day, allowing T-Notes to make fresh highs, before the late, Mnuchin-inspired

pull back. Fed's Daly, Barkin and Kaplan have offered little new.

- Focus Thursday falls on the second estimate of Q2 GDP and 7-Year supply.