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Cantor Fitz analyst Justin Lederer.......>

US TSYS/3Y
US TSYS/3Y: Cantor Fitz analyst Justin Lederer said the US Treasury "will kick
off this week's coupon supply with its sale of $24Bln 3-year notes" today at 1pm
ET. "The (coupon) auctions have all been moved up by one day to accommodate for
settlement on Friday."
- He added "the Treasury market is opening in the red this morning with a
risk-on tone as N. Korea did not launch any missiles over the weekend and Irma
weaken." He said that the market will have a "continued focus on global
headlines/events."
- Lederer expected "decent demand" at the 3Y auction but "would not be surprised
by a small concession and/or small tail given the current level of rates. We are
still officially calling for one more rate hike by the Fed in 2017." He adds
"this 3 year auction is setting up to be under-written at the lowest yield of
2017."

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