Tsys trade higher, near top end.....>

US TSYS SUMMARY: Tsys trade higher, near top end of range after extending

session highs in early/post-CPI data trade. Eye on Penn elections, poll close at

2000ET. Feb CPI +0.2%, as expected by an MNI survey and below the +0.3% whisper

number, energy prices up only 0.1% and food prices flat.  

- US$ index weaker after starting session higher (DXY -.193, 89.702); equities

weaker (emini -25.0, 2764.0; German DAX as well -292.0 to 12132.5); gold firmer

(XAU +3.65, 1326.70); West Texas crude weaker (WTI -.76, 60.60).

- Relatively quiet session on modest volume. Flow included some deal-and

auction-tied hedging, real$ +3s post CPI, fast$ sellers in 10s and long end

sporadically into midmorning. Midday two-way flow w/better buying in

intermediates to long end post $13B 30Y auction re-open that awarded 3.109% rate

(3.121% previous); strong 2.38 bid/cover (2.26 previous).

- Swap spds wider by the bell, session wides with long end outpacing short end

late. Modest deal-and Tsy supply hedging in addition to sporadic rate paying in

2s, 10s and 30s.

- Late ylds: 2Y 2.258%, 3Y 2.416%, 5Y 2.623%, 7Y 2.772%, 10Y 2.844%, 30Y 3.101%