The overnight repo market....>

US TSYS/OVERNIGHT REPO: The overnight repo market on Friday saw some varied

specials: the U.S. Treasury two-year note, five-year note, old three-year note

and six-month T-bill all traded tight.

- Meanwhile the Treasury General Collateral keyed off the Overnight Bank Funding

Rate (OBFR), as opposed to the rate set in the prior day's Fed Reverse Repo,

said traders. The Treasury G/C traded at 1.53% Friday, vs. 1.51% Thursday, 1.44%

Wednesday and 1.40% Tuesday.

- The two-year note and five-year note demand occurred amid shorts related to

next week's 2/5/7-year Treasury auctions, said traders. The 2-year note traded

at 1.08%, the 5-year note at 0.90%, while the old 3-year note traded at 0.85%.

The six-month T-bill however traded tight too at 0.85%.