Tsys midrange after mkt began NY narrowly...>

US TSYS: Tsys midrange after mkt began NY narrowly mixed, flatter, then mild dip

buying after soft retail sales and 5Y Tsy futures block buy, then two-way flows,

until FX-tied buying from black boxes as US$ softened vs. Japanese yen. Then

black boxes did mild sales in Tsys as US$ gained. Flows included buying in 5Y,

30Y bonds but also selling in 7Y, 10Y. Traders noted there is not as much action

Friday as after the CPI on Thursday. One trader noted "we are going to enter a

period where the hurricanes are going to have a weird impact" on economic data

so such data "won't be as useful for the next couple of months," he said. 

- Plus "the Street may not be as short as they usually are," he added, noting

large dealer holdings from this past week's 3/10/30Y auctions. "And we also had

just had a nearly 20-bps backup in yield over the past week or so," which likely

spurred already shorts to cover, he said. (The cash 10-year note is at 2.193%

now, vs. 2.216% Thurs session high yield of Thurs, and last Friday's 2.016%

intra-day low yield.)