Tsys ended Mon mainly higher........>

US TSYS SUMMARY: Tsys ended Mon mainly higher after risk-off mood, afternoon

N.Korea jitters. Kyodo said Jpn earlier received radio signals suggesting NKorea

preparing for missile launch test; Kyodo said N.Korea satellite image did not

show missile or mobile launcher, Jpn did not specify type of possible NK

missile. 

- Quiet afternoon range after good $34B 5Y auction: 2.066% rate, 65.8%

indirects, good 11.4% directs, small 22.8% dealers. Mixed 2Y auction 1.765%

rate, soft 41.2% indirects but good 16.99% directs, so large 41.9% for dealers. 

- Tsys futures volume artificially heavy: large pick-up in rolling from Dec to

March futrs into Thu first notice date (Mar top step, Dec expires mid/late Dec)

* Early flow: large 10Y futrs block buy: +22.9k TYH, 124-24 helping spur gains;

FX-tied bid as US$ weak v. yen, Bund-tied aid. But Tsys digested pre-auctions

shorts and rate-locks into 2Y, 5Y sales, busy high-grade corp bd issuance. Fast$

and prop acct buys before rates reversed early gain; Mar 10Y-ultra Blck

sale(-7.9k, 133-30) spurred sales. TSYS 3PM ET:2Y 1.745%, 3Y 1.837%, 5y 2.047%,

7y 2.213%, 10Y 2.328%, 30Y 2.765%