*** Treasuries hold lower range.....>

US TSYS SUMMARY: *** Treasuries hold lower range midday Mon after risk-on move

pressure amid firm US stocks, tighter Portugese sovereign debt sprds (S&P raised

it to investment grade late Fri). Tsys had mixed flows, "not a lot of risk going

through" but "reversal of some flight-to-quality flows" done pre-wknd. Traders

estimated volume at half of normal; Jpn mkts had Mon holiday. 

- Tsys pressured by weaker German Bunds, by FX-tied selling. Fast money did 2way

flows, real money better buyers, macro funds quiet (await FOMC Wed). 

- Tsys rate-lock hedging vs. high-grade corporate bonds; issuance sped up and

front-loaded early in wk, before Wed FOMC, and Jewish religious holidays, Rosh

Hoshanah Thu,Fri. Others eyed nerves into Wed FOMC Fed bal.sheet reducTn anncmt,

potential Dec rate hike view. 

- US TSY FUTRS: Block buy at 10:30am ET of 8,500 FVZ 5Y futures at 117-31, buy

thru 117-305 offer at time. German Bunds hurt by 12,276 RXZ7 block trade, which

seemed like sale, in UK afternoon. 

- US SWAPS: Steady/mixed, range; earlier insur portf paying in intermeds, fast$

sprd curve steepeners (5s vs. 10s, 30s) & asset mgr recvg 2/5/10Y sprd fly.