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US Tsys ended Thurs lower as market....>

US TSY/RECAP
US TSY/RECAP: US Tsys ended Thurs lower as market digesting heavy US$ high-grade
corporate bond supply and decent $28B 7Y note auction. AT&T sold a $22.5B
seven-part debt deal, which has launched; pricing later Thurs. Yields mostly
higher across the curve, seeing some steepening, 5-30 Year yields up 1.bp-3bp.
- Tsy 7Y auction tailed a small bit to 2.126% rate, but drew strong 67.7%
indirects, good 11.54% directs, only small 20.62% for dealers. 
- Tsys bounced off earlier session lows around 12:58pm ET amid large 10Y Tsy
futures block: apparent buy done for 10k TYU7 at 125-24+, as was trading
125-24/24+ at post time. Also were two Tsy futures blocks: 10K FVU7 5Y at 118-02
at 1:59pm ET, same-time 7K TYU7 at 125-23+. - Earlier pre-auction shorts/sales,
rate-lock hedges on busy corporate bd issuance: AT&T, BNZ $650M 5.25Y, Amex
two-part debt, BNZ 5.25Y debt deal. 
- Also buying of about 10,000 10Y Tsy futures nr 125-25/255 at 9:50am ET. Weak
NY Tsys open, overnight 2way flows; morning pre-auction shorts/sales, 2Y-10Y
Tsys sales. US swaps mixed. MNI poll ups Fri 8:30am ET GDP median estim to 2.7%.
- T-Notes open Asia at 125.26, 10-Year yield last 2.310%.

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