surface, but showed strength underneath, and despite the uptick in jobless claims and labor conditions improving. So the initial Treasury market bid was underscored by covering. The large open interest for Tuesday's trading suggested the Street was short. Some covered in Wednesday's post CPI relief rally, but more covered Thursday morning. Prices then reversed sharply. Once shorts covered, the market lacked buyers. Hedging was also seen against the $1 billion Bank of America Treasury 30-year deal. It was the tepid two-year auction that moved Treasuries into negative territory as it was a Street-led affair.