And BMO's Kohli said on 7Y auction.......>

US TSYS/7Y: And BMO's Kohli said on 7Y auction that 7Y "remains one of the areas

of the curve more immune to hawkish Fed-speak. Due to this, we see value in

holding it, as we continue to learn more of what a 2018 Powell-led Fed will look

like." He noted BBG/Barclays Tsy index extension is 0.11 yrs, "substantially

greater than average." 

- Kohli added Fed buying at 7Y auction "will be $1.37 bn, which is slightly

higher than October but still below historic levels." 

- He noted 7Y "auction stats offer very little bias, with four of the last 8t

Nov. 7-year auctions stopping through, three tailing and one stopping on the

screws. The average November auction has resulted in a 0.77 bp stop through. The

outright stats are marginally positive with 4 of the last 6 auctions stopping

thru." 

- He adds 7-yr "doesn't look esp. cheap" outright "with ylds 8bp lower" than at

Oct. 7-yr, and "slightly rich" on 5s/7s/10s and 2s/5s/30s butterflies. 

- Kohli noted "moderate" headline risk into Wed "annualized GDP, Personal

Consumption and the Fed's Beige Book."