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/TIPS: The overnight repo....>

US TSYS/OVERNIGHT REPO
US TSYS/OVERNIGHT REPO: /TIPS: The overnight repo market Thursday saw very tight
conditions in the 5-year TIPS note, while the Treasury nominal 2-year note and
5-year note remain tight, said traders. The 2-year note had auction-tied shorts
but perhaps others too, with shorts set into the late-month 2/5/7-year auction
supply that kick off Monday very quickly.
- The 5-year note did its usual early pre-auction midmonth tightening trend into
the late month 2/5/7-year note auctions, said traders. Meanwhile the 10-year
note loosened tightened too. But traders noted the 5-year TIPS note had traded
90 basis
points through the Treasury General Collateral level of 1.19%, or at about
0.29%, amid good demand; that suggests quite good shorts in the issue. It's
unusual for TIPS to trade very tight in RP market.

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