Treasuries hug a tight mildly higher....>

US TSYS/30Y: Treasuries hug a tight mildly higher price range, with 30Y bond a

shade lower heading into the 1pm ET US$12B 30Y bond reopening. Traders cited

pre-auction shorts/sales this morning into such supply, which wrapped up a very

compressed bond auction schedule this week amid Mon holiday and Wed 3Y,10Y

auctions. 

- The 30Y auction may need a tad more price concession, said some, such as

2.88%. 

- Asian buying should come into 30Y after good overnight buying from Asian and

Chinese accounts, including some early NY buys in 2Y, 5Y Tsys, said traders.

Also 2way hedge fund flows in 30Ys, other mixed flows in shorter issues. 

- Nomura N.Amer. hd of rate research George Goncalves and analysts Stanley Sun

and Penglu Zhao said "heightened expectation on fincl deregulation may help cash

long end perform. Lg end bid continues, suggesting duration demand both outright

and on the curve." 

- HISTORY: Sep $12B 30Y reopening: 2.790% rate, 2.750% cpn, 2.21 cover, 58.8%

indirects, 6.82% direct, 34.4% dealers.