BMO analyst Aaron Kohli eyed today's.....>

US TSYS/7Y: BMO analyst Aaron Kohli eyed today's 1pm ET US$28B 7Y auction and

projects it will get a "stop close to the screws on 7s with only small outright

and relative concessions but month-end demand and solid foreign flows have been

adding to the buying pressures. We're fans of owning 7s over a longer horizon,

but the smaller concession on the curve means we're not as optimistic as we were

about the prospects at the auction itself. Seasonal stats are biased to a tail

and add marginally to our pessimism."

- He adds that "with the Fed out of the way" after Wed FOMC meeting, "there's a

bit less event risk to hinder setup for the 7-year and the outright concession

early in the day has likely created at least a bit of demand for 7s. Auction

stats are leaning to a stop through with an average stop of -0.3bp for the last

six auctions."

- And a month-end "index extension of +0.07 years means light structural demand,

but there should still be some buying heading into the end of this week and

early in the next one," he said.