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

US TSYS/SUPPLY: FTN Financial's Jim Vogel said the "shortest end" of Tsys curve

"needs upbeat news from Congress on the debt ceiling so investors can move past

this fall's mechanics of T-bill issuance, etc, and focus on the ramifications of

the Fed's balance sheet management timing (the first two steps are easy: the

chain reactions, not so much)."

- Vogel said that the US Treasury said that "Sept. 29 is the last day it can

reliably use extraordinary measures to keep bills paid on time. Others estimate

mid-October, but the point is, the deadline comes shortly after Congress returns

from recess. After the debt ceiling comes budget resolutions to keep government

operations open in FY2018. Given the heavy agenda in the next two months, we do

not expect any major news at Wednesday's refunding announcement."