Traders said it is mostly US accounts...>

US TSYS/30Y: Traders said it is mostly US accounts doing the selling today, with

only milder foreign accounts' selling. Some thought that despite the mildly

negative technical background (10Y yield needs to get back below 2.18% to

brighten things up, the 30Y auction could potentially draw a bid amid price

concession. 

- "The 30-year is trading well on the curve," said one trader. "It's fives that

are leading the way lower. You may start to bring the Fed back into play. The

risks are aligned in case the August CPI Thursday would surprise to the upside,

as did the UK inflation earlier this week." 

- Some noted the Austrian 100-year Euro-denominated bond sold this week getting

a mere 2.11% yield makes the US Tsy 30-year bond at 2.779% (current 30Y) look

very cheap. And WI 30Y is even cheaper at 2.781% bid, according to TradeWeb.