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J.P.Morgan: 2-Year Supply Will Be Digested With Relative Ease

US TSYS

J.P.Morgan note that Tuesday will see the Treasury auction "$60bn 2-Year notes, unchanged in size from last month. Since the April auction, 2-Year yields have declined 2bp and are trading in the middle of the range they have held over the past couple of months. The WI 2-Year roll opened at +0.625bp, in line with our fair value estimate, and remains at that level, modestly underperforming the erosion of carry. With front-end yields likely to be well anchored by a Fed on hold, and 2-Year yields in the middle of their recent range, we think tomorrow's auction will be digested with relative ease."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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