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FTN Financial's Jim Vogel noted the......>

US TSYS/2Y
US TSYS/2Y: FTN Financial's Jim Vogel noted the $26B 2Y auction rate "came on
top of the WI bid for the 45 minutes prior to the sale. Dealers own 50.6% of the
sale, less than last Dec's 58.0%. Allotment at the high yld was 82.5%, mildly
uncomfortable for dealers, but more manageable than a bad sale that would have
raised nerves before the 5-yr on Wednesday. FTN's target was 1.942% this morning
when the day got off to a shaky start. Bid/cover of 2.52x also better than 2016
version. The uptick in the holiday wk participation came from indirects."
- He added today's 2-year auction award rate, 1.922%, "leapt 16bp from Nov's
sale and is easily the highest 2-yr auction since Sept 2008 (at 2.115%)."
- He added the average "monthly yld increases had been 14bp the previous three
sales."

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