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*** The overnight repo.......>

US TSYS/OVERNIGHT REPO
US TSYS/OVERNIGHT REPO: *** The overnight repo market again saw demand Wednesday
in the Treasury 2-year, 3-year 5-year, 7-year and 10-year notes, but the 2-year
note proved esp. tight and eventually tightening up to -2.0% recently. 
- "They'll be bid there again tomorrow," said one trader to Mkt News. "A few
accounts actually pulled back their supply for the quarter end" thus won't lend
out their 2-year notes to others, until that quarter end period has passed, he
added. 
- The Treasury 2-year note, 5-year note, and 7-year note demand occurred amid
shorts set around the late month 2/5/7-year note auctions. Meanwhile the Fed's
one-day reverse repo drew a large demand of $220.1 billion.

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