Wed 12- 14

The Treasury will auction a 30 year after 2 strong auctions this week. Last month's Certificate of Confiscation came at 3.2 with a 5bp tail. Once again, buying the "D" grades and selling the "As" paid off. We, along with others, feel the 10/30 piece of the curve is too narrow. The FED will be selling roughly 8B of Oct 12 to May 13 paper back to hungry and scared players.

The SP future is hovering in our support area and will stop us out on a break 1213 from an average price roughly 10 above. We will not be turning to short.

Don't believe the hype. New numbers for 10 year notes and Euro-fx are on the page.

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