The 30Y Bonds auction tailed........>

US TSYS SUMMARY: The 30Y Bonds auction tailed yesterday, bringing it to a

complete set of 3 auctions where that had happened. But with the Dow collapsing

again, the market volatility would have played a big role. Overnight the S&P

mini future has rebounded 0.6% but the correlation to 10Y Treasury yields have

faded dramatically. Had the correlation to equities from the first part of the

week held, then the 10Y UST yield would be 2.73%, instead it sits at 2.85%.

- With Treasuries not benefiting to risk-trades, attention on potential

risk-parity fund losses has built in market commentary.

- The House has approved the Senate's version of the stop-gap spending bill and

this has averted a government shutdown.

- The 2Y UST is 2.2bp higher at 2.32%, the 10Y is 2.5bp higher at 2.85%.

- There is very little in the way of data today, and Esther George is the only

scheduled Fed speaker.