And BMO's Aaron Kohli said on today's...>

US TSYS/10Y: And BMO's Aaron Kohli said on today's 1pm ET $23B 10Y auction that

"10s tend to perform relatively well in Fed hiking cycles as the 7-year sector

acts as a fulcrum with 10s and 30s outperforming the front-end." 

- He cited "very little event risk for 10s in the week ahead, with little

economic data and a fairly empty Fed calendar. The Republican tax bill remains

the largest risk for the sector and we believe that in the near-term, there

remains much more room for Treasury-bullish news on that front." 

- He adds foreign buying in US 10Ys "improved slightly in October to 13.4%.

Japanese flows tend to return following their Sept. 30th quarter end. There may

still be room for flows to rebound from this effect" as 10Y auction on Oct. 11

"may have followed qrtr-end too closely, to see the full follow-through" bid. 

- He adds 10s "richened recently with yields falling 16 bp from their late

October highs. The continued flattening bias across the curve has taken away

much of the concession from the 10-year with it appearing rich compared to the

belly and front-end, however some cheapness still remains vs the longer end of

the curve."