Treasuries ended the overnight.........>

US TSY/RECAP: Treasuries ended the overnight session mainly higher, except

30-Year after a rangebound afternoon followed morning short-covering, black-box

tied buys, technical buying. Tsys began NY mixed, steepener after overnight

two-way flows tilted toward selling. 

- Data: weaker 49.7 US ISM-NY Current Conditions Index; 4.7M annualized Sept. N.

American car sales and 9.6M annualized N. American truck sales - But then Tsys

rose as some accounts covered shorts, amid JPM All-Clients Tsy Client survey

saying shorts this week at 44%, most since May 2006. US government bonds had

technical buying as cash 10-Year note yield declined below 2.35%.

- Black boxes bought Tsys in morning as USD receded vs JPY. Tsys saw 2/30Y,

3/30Y, 5/30Y steepeners. Earlier NY mixed flow by foreign accounts and mild USD

real money profit-taking. - US SWAPS: Spreads mostly tighter by close bell,

curve flatter vs. steeper Tsy curve; $100M receiver in 5Y US$ swaps at 1.999%,

$110M 10Y receiver at 2.2875%.

- U.S Tsys opened Asia at 125-13, now down at 125-11+, 10-Year yield last at

2.323.