Treasuries hover just above day's.......>

US TSYS/30Y: Treasuries hover just above day's price lows, after light dip

buying surfaces after morning sales in front end, 5Y, and 30Y bonds into 1pm ET

US$12B 30Y reopening. (Mkt also aided by recent 2Y Futures buying too.) 

- BMO's Aaron Kohli expects a "fair reception" for the 30Y auction as "rich

levels collide with low liquidity. The 30-year looks rich on an outright and

relative basis on the curve, but that's largely in line with the broader

flattening bias. On the positive side, the bond is a bit more insulated from the

near-term effects of a December rate hike, and a long fits well with our outlook

for 2018. Buyers could step up even at rich levels, as liquidity is light in the

market now, and only likely to worsen into year-end." 

- Kohli expects a "stop close to the screws, as these effects largely balance

out." He added "liquidity value of the auction remains the biggest positive for

the event, as volumes have been light and declining for the past week." 

- He adds long end flows are "positive with $164Mln of inflows in the mutual

funds we track and $77 million flowing into the ETFs we track and momentum is in

favor of the long-end of the curve."