Tsys prices ended lower Tuesday.....>

US TSYS SUMMARY: Tsys prices ended lower Tuesday but market appeared to have

stabilized somewhat at the lows, after some mild dip buying followed weak $20B

10Y reopening auction and Tsys selling Mon and Tues. 

- Ten-yr reopening tailed to 2.180%, relatively soft 55.3% indirects, in-line

6.05% directs, leaving fairly large 38.7% for dealers. But amid post-auction

redistribution sales, 10Y note managed to hold key 2.180% 30-day moving average

level, which brought in cautious dip buyers, who stabilized market. 

- Tsys earlier traded near session lows into 10Y auction amid carryover risk-on

tone from Mon, US$ rebound, stronger stocks. Tsys ratcheted lower midmorning,

trailing similar UK Gilt move. Limited data, Fed blackout until next wk FOMC. 

- US govt bonds saw end-user buying in front end, selling in cash 30Ys, mixed

intermediate flow. Pre-auction short-setting into 10Y auction occurred, and

corporate rate-lock hedges amid busy corporate bond issuance. US swaps ended

mixed, wings wider while intermediates tightened on late supply hedge unwinds. 

- US TSYS 3pm ET: 2Y 1.335%; 3Y 1.469%; 5Y 1.749%; 7Y 1.993%; 10Y 2.171%; 30Y

2.775%