Tsys were firmer on Tuesday, with......>

US TSY/RECAP: Tsys were firmer on Tuesday, with T-Notes going out near best

levels as equities remained capped by familiar resistance areas. Weak housing

starts data leant support to the space, while heavy futures volume was driven by

roll activity.

- Block buyers of TY also provided support, although TU/TY steepeners were noted

later in the day.

- Tsys had earlier trimmed gains after Fed Chair Powell's remarks left the doves

a little disappointed as he reiterated the Fed's recent rhetoric.

- A pick up in consumer confidence also added some weight, but was to be

expected after the gov't re-opened and equities have recovered from their

December lows.

- The latest 7-Year auction stopped through by 0.9bp with the cover ratio

holding steady, and little changed observed in the dealer/direct/indirect

takedowns, although indirect participation continued to moderate, albeit at the

margin.

- T-Notes last 122.09+, U.S. 10-Year cash Tsy yields closed at 2.636%.