Tsys went out near the lows on.........>

US TSY/RECAP: Tsys went out near the lows on Thursday, with the curve sitting a

touch flatter.

- Futures volume was decent enough, albeit on a relatively narrow range.

- Sources reported an early cash bid for 5s, with pre-auction shorts set,

two-way option and hedging flow was also observed.

- The 7-Year auction came through on the screws, with the cover ratio holding

relatively steady, dealer takedown also held steady, as indirect participation

rose at the expense of directs.

- The Eurodollar strip was mildly lower, closing at/near session lows, a

parallel shift was observed across the Reds through Golds, operating in a tight

range with low volume.

- Focus on tomorrow's U.S. GDP data ahead of next week's FOMC MonPol decision.

- T-Notes last at 119.11+, U.S. 10-Year cash Tsy yields closed at 2.976%.