The overnight repo market....>

US TSYS/OVERNIGHT REPO: The overnight repo market Friday saw the U.S. Treasury

5-year note tighten further into a negative rate of

-1.65% in anticipatory action heading into next week's late-month 2/5/7-year

note auctions. Meanwhile, the 10-year note also developed a mild bid too but

traded much looser at +0.45%.

- The 5-year note traded at -1.65% Friday -1.55% Wednesday, vs. -0.60% Tuesday

and +0.05% Monday, said traders. Tghtness occurs amid shorts being set into the

2/5/7-year note auctions, said traders. Plus there are also curve-flattening

trades done Tuesday in cash 5/30-year Treasuries, such as short 5-year note/vs.

buy 30-year bond, said traders.

- Meanwhile the 10-year note and 7-year note both traded with a much milder bid.

Traders noted Monday that the 10-year note traded very tight to the Dec. 15 term

date traded at -1.00%.

- The Treasury General Collateral rate meanwhile traded at 1.17%.