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Treasuries drifted lower amid ongoing.......>

US TSYS
US TSYS: Treasuries drifted lower amid ongoing post-auction redistribution sales
after okay 3Y auction but mixed/weak 10Y auction. Tsys also pressured as US
stocks firm up a bit.
- "We did not do much of a setup for these auctions," commented one veteran
trader. With two coupon auctions so close together on one day, the pre-auction
shorts and setup were difficult to put on, given that the market early Monday
was having a safe-haven rally amid fears after the bomb blast around the Port
Authority Bus Terminal in NYC midtown, said traders. 
- But the Tues 30Y bond reopening auction should have a clearer setup, so some
traders might be putting on pre-auction shorts right now heading into that.
- In other action, traders confirmed that the US$/yen firmed up, which spurred
some FX-tied selling in US Treasuries. But all in all, traders said the market
had some "apathy" as all awaited the central banks' meeting this week, which
include the FOMC Tues-Wed meeting expected to result in a 25-bps rate hike; that
meeting will also have the post-auction briefing news conference by outgoing Fed
Chair Yellen.

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