The overnight repo market....>

US TSYS/OVERNIGHT REPO: The overnight repo market Thursday saw the Treasury

3-year notes tighten up a lot to a negative -1.75% rate, with much milder demand

for the 10-year notes.

- The 3-year and 10-year notes' demand likely stems from shorts being done to

hedge against next week's 3/10/30-year Treasury auctions, said traders. The

3-year note is quoted at a tight rate also for the full long holiday weekend

trade, which in this case would be a Thursday-Tuesday trade; the rate was cited

at -0.45%.

- Meanwhile, there also was a mild bid for old 2-year, 5-year and 7-year notes,

despite this past Monday's settlement of last week's 2/5/7-year note auctions.

The Treasury General Collateral rate was at 1.13%.