Tsys lifted mildly off the session......>

US TSYS/10Y: Tsys lifted mildly off the session low prices, then had muted

two-way flows included post-auction redistribution sales after solid $23B 10Y

auction (new).

- BMO's Ian Lyngen said "this afternoon's 10-year Refunding auction was solid

with a stop-through of 0.4 bp and non-dealer bidding of 77% vs. 71% average. 

10-year auction stops at 2.314% vs. 2.318% 1 PM wi."

- He adds that primary "dealers were awarded 23.0% vs. 29.0% average for 10-year

Refunding auctions. Indirects get 68.0% vs. 63.6% norm. Directs take 9.0% vs.

7.4% average. Bid/Cover was 2.48x vs. 2.40x average."

- He noted that the "dealer hit ratio" had "dealers take 15% of what they bid

for vs. 19.2% norm" while the "indirect hit ratio" showed "customers take 84% of

what they bid for vs. 89.8% norm."