Treasuries ended Mon higher after...>

US TSYS SUMMARY: Treasuries ended Mon higher after strong $34B 5Y auction,

FX-tied bid (weak US$/yen), short-cover. Tsys began NY mixed, ebbed into 11:30am

ET $26B 2Y auction (1.345% rate, mildly weak 45.8% indirects, OK 12.56 directs,

41.6% dealers.) 

- But Tsys receded more amid post-auction 2Y redistribution sales, pre-5yr

setup, so had concession into 5Y auction. Five-year sale was strong: it drew

1.742% rate, solid 69.1% indirects, very strong 13.5% directs, leaving a record

low since 2009, 17.5%, for primary dealers. Next: Tues 1pm ET US$28B 7Y auction.

- Tsys action muted amid UK bank holiday, vacation-thinned trading volume. Tsys

flows quiet if you take away the heavy Sep/Dec roll volume (TYU/TYZ over 1Mln

earlier) and auction hedging. Mkts had little/no react second tier data. 

- Traders awaited Friday key Aug. jobs; MNI poll:180K median est. Tsys 2Y notes

saw 2way flow. US 2Y swap spd: large $450M 2Y swap receiver trade at 2.050% at

14:50pm ET, also approx $182M 5Y payer from 1.7930%-1.7995% at 10:02-10:03am ET;

then mild 3/4/5Y ratio spread fly. Eurodlr futures steady in the wings; TSYS 3PM

ET: 2Y 1.334%; 3Y 1.454%; 5Y 1.742%; 7Y 1.977%; 10Y 2.159%; 30Y 2.752%