Well bid after the bell, Tsys gained...>

US TSY FLOWS: Well bid after the bell, Tsys gained steadily from mid-morning on,

finally breaking range to the upside late, yld curves under pressure on an

otherwise low conviction/low volume (TYU<750k) session. Equities traded weaker

(ESU0 -35.5), more than making up for Mon's rally.

- US Tsy $46B 3Y Note auction (912828ZY9) right on the screws: awarded 0.190%

vs. 0.190% WI, on a bid/cover 2.44 vs. 2.55 previous. Indirects drew 54.30% vs.

53.31% prior, directs 13.25% vs. 14.47% prior, dealers w/ 32.45% vs. 32.22%

prior.

- Two-way flow and supply related unwinds followed light cash buying across the

curve. Fed Clarida spoke late, Tsys gained slightly on the back of comments on

CNN interview: "ADDITIONAL FORWARD GUIDANCE IS AMONG TOOLS WE CAN USE" and

"THERE'S MORE WE COULD DO IN TERMS OF OUR BALANCE SHEET," Bbg

- The 2-Yr yield is up 0bps at 0.1567%, 5-Yr is down 1.9bps at 0.2832%, 10-Yr is

down 4.1bps at 0.6348%, and 30-Yr is down 7.2bps at 1.3676%.