Treasuries hold mixed flatter........>

US TSYS/SUPPLY: Treasuries hold mixed flatter levels midmorning after early

safe-haven gains on NYC subway bomb blast, then later profit-taking,

pre-auctions shorts into 11:30am ET 3Y auction and 1pm 10Y reopening. Traders

cited quiet conditions. 

- Tsys saw 3/10Y, 3/30Y, 3/5Y flatteners, and 2/10Y, 2/30Y, 5/30Y, 3/30Y

flatteners. 3Y note has a mild bid in overnight RP, which reflects shorts. -

- BMO's Aaron Kohli said "the note's cheapness outright and on the curve are the

biggest inducements for buyers at the auction today, while the greatest risks

facing the 3-year are the combination of the truncated auction schedule, the

event risk of a Fed statement and an important CPI read on Wednesday."

- But he said "foreign demand saw a downtick in the Nov auction" to 16%. And he

added 3-yr "is very much exposed to the economic and Fed calendars in the week

ahead, with the risks of a Dec. rate hike mostly priced into the curve, but the

potential for increased hike pricing in 2018 still leaving room to sell off." 

- HISTORY: Nov. 2017 $24B 3Y auction (new) drew a 1.750% yield, a 2.76

bid/cover, 53.52% indirects, 9.02% directs and 37.5% primary dealers.