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J.P.Morgan Expect 30-Year Supply To Be Digested Smoothly

US TSYS

J.P.Morgan note that Wednesday will see the Treasury auction “$19bn reopened 30-Year bonds, unchanged from the last reopening auction in June. Since the June auction, 30-Year yields have declined 5bp and are now near the middle of the past 3-month range. We note that the long end of the curve continues to appear somewhat steep after adjusting for the market’s medium-term Fed expectations, which should be supportive for tomorrow’s auction. Despite the recent decline in yields, the steepness of the long-end should help this auction be digested smoothly.”

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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