Treasuries mainly mildly lower,.....>

US TSYS SUMMARY: Treasuries mainly mildly lower, flatter midday, 30Y higher

after morning curve choppiness then short-covering, technical lg end buying. 10Y

yield 2.253% vs. 2.251% Aug.1 low yld vs 2.247% 55-day moving avg. "Decent" Tsy

front end 2way activity cited. 

- Early brisk buying in Tsy futures esp. 10Ys (77K traded after initial

refunding anncmtn), then 22K sold down to 125-31+ in profit-tkng. Then 10,000

USU Classic Bond futures bought from 153-23 to -27, while 30K FVU 5Y futures

traded in uptick from 118-04.5 to -07.5. 

- Then more bought, 9,500 TYU 8:50am ET at 125-31.5 while 7,483 bought in WNU

Ultra Bonds, plus 50K TYU bought on spike up. Then 11:14 am ET block sale of

5,000 TYU at 126-07, cross on bid at print time. 

- Cash 2/30Y, 5/30Y Tsy flatteners as Tsy Aug refunding news did not cite Ultra

Long bond issuance but midmorn flattener unwind as Tsy said at briefing still

studies Ultra Bonds, but no decision date. Earlier misc 5Y sellers, two-way 10y;

30Y buying by real$, bank portfls. German Bunds closed near session highs: solid

German 10Y auction and MNI's exclusive dovish St.Louis Fed Bullard story.