The overnight repo market....>

US TSYS/OVERNIGHT REPO: The overnight repo market Thursday saw lingering demand

for the ten-year note, said traders, but early 2Y, 3Y and 5Y note demand faded

by midday. But ten-year note demand still endured amid shorts likely being set

into next week's 3/10/30-year auctions, said traders. However the two-year,

three-year and five-year notes lost their early bid by midday as some short

positions in those areas appeared to have covered.

- Treasury will sell $24 billion 3-year notes Tuesday, $23 billion 10-year notes

Wednesday and $15 billion 30-year bonds on Thursday. But likely those issues

will see more shorts set into next week and tighten. Most other issues such as

T-bills traded quietly in summer action. 

- But a slight bid remained in the old five-year note, which has had a

long-running special, said traders.