Treasury Update

Today market price direction could be volatile again and revolve around the $13.0B in 10yr notes to be auctioned.

Yesterday we saw aggressive bidding for the 3 yr auction and it could also be the case for the 10yr and lift treasury prices.

We expect a strong bid-to cover ratio.

We will watch closely the result as it could be a good indicator for the long term.

10yr note Support seen at 106-30 and Target at 107-16.