*** Treasuries rise higher still, as...>

US TSY FLOWS: *** Treasuries rise higher still, as some read about the current

high-level of Tsys shorts and opt to cover Tsys shorts as JPM survey indicated

it's a widely held position at 44%, most since May 2006. "It's a bit of a short

squeeze: the positioning report showed a large increase in short in both actives

and the all-clients JPM Tsy Client Surveys," said one trader at a primary

dealer. "People are saying, 'I'd better get out of this consensus short

Treasuries trade." 

- Tsys also have technical buying and black box FX-tied buying (weaker US$/yen).

Earlier NY action had mixed flows by foreign accounts and mild US$ real money

profit-taking.

- Meanwhile the cash 10Y note is at 2.328%. Some traders eyed talk Japanese

accounts would like to buy 10Y note at 2.40% and noted 10Y only hit 2.36%s

overnight before ebbed in NY. "We do have people who want to buy the 2.40%"

zone, the July 2017 high yield, said one observer. "But it's kind of a (investor

view) mix: some others were heavy buyers for the past 3-4 months, and they now

think yields are going higher than this. So they are getting a little nervous."