US Tsys operated in a narrow range.....>

US TSY/RECAP: US Tsys operated in a narrow range on Monday, rebounding late on.

- Tsys had moved off of lows ahead of 3-Year supply, following the lead of the

Bund, sources say "the concession took place early", as fast-money & prop

accounts covered shorts.

- Both the 3- & 10-Year auctions stopped through marginally, with the cover

ratios holding steady, indirect participation edged higher in the 3-Year sale,

while direct participation moved upwards in the 10-Year auction.

- Prices edged lower around 10-Year supply but recovered late on.

- Future's volume was light, while option volumes was heavier, with large buying

interest in the TYU 120/122 call spreads.

- T-Notes last at 119.14, US 10-Year yield closed at 2.952%.