Treasuries ended Wed higher,........>

US TSYS SUMMARY: Treasuries ended Wed higher, flatter as 30Y, 10Y note esp. drew

buying; striking as $34B 5Y auction drew so-so demand, but later had profit in

aftermkt. The $13B 2Y FRN reopening had reasonably good bid: 3.5bp discount

margin; strong 62.7% indirects bids, no directs, left small 37.3% for dealers.

 - 5Y sale soft as tailed 1.6bp to 2.245%; 58.4% indirects, 7.94% directs, 33.7%

dealers, 2.36 cover; but buying came right after and 5Y sale soon traded at

profit.

- Tsys began NY weak then firmed, stealthy bid/short-cover. Tsy futures buying

in 10Y TYH8 from 123-20 to 123-20+ for 10,000 before 8:22am ET. Natural gas rost

about 3.6%, NYMEX crude oil -0.52%; copper hit multi-yr highs. Tsys aided by

soft 122.1 Dec Conf Bd Consumer Confidence index, 0.2% NAR Nov pending home

sales.

- US swaps tighter earlier, US$170M receiver 5Y at 2.29602%. Tsys had late

apparent sale on Classic Bond futures: 6,816 USH8 at 2:20pm ET. TSY 3PM ET: 2Y

1.899%, 3Y 1.989%, 5Y 2.200%, 7Y 2.336%, 10Y 2.414%, 30Y 2.747%.