Treasuries ended with 5Y-30Y........>

US TSYS SUMMARY: Treasuries ended with 5Y-30Y stronger, 2Y-3Y weaker amid

curve-flattening flows and a soft/mixed $26B 2Y note auction (2Y auction drew

1.922% rate, fairly soft 40% indirects (least since Dec 2016 32.74%,), near-avg

14.5% directs, leaving fairly large 45.5% for dealers; 2.52x bid/cover. 

- Tsys began NY weaker then firmed into midday, ending off late morning highs as

long end outperformed into 2Y auction. Mild US$ weakening aided Tsys with

FX-tied bid; curve flattening with supply-tied hedding kept short-end anchored.

- Light post-Christmas trading volume (TYH 10Y futures 270,997); Little to no

react as Oct. Case-Shiller home price index up 0.7%. No LIBOR sets Tues amid UK

holiday. 

- NYMEX crude oil rose: WTI near $60, most since mid-2015 as alleged terrorists

blew up Libya pipeline; Natl Oil Corp estimated -100K output drop (Bloomberg.) 

- US swaps spds tight. US high-grade corporate bond issuance absent. 

- OVERNIGHT REPO: Tsy 10Y, 5Y tight. 

- TSYS 3PM ET: 2Y 1.903%, 3Y 2.017%, 5Y 2.237%, 7Y 2.381%, 10Y 2.468%, 30Y

2.813.